T-1 Capacity Auction Provisional Results for Delivery Year 2023-24

LCCC welcomes the Capacity Market T-1 Auction results for Delivery Year 2023-24. The Government purchased 5.8GW of additional derated capacity which could cost the consumer up to £377m settled via the Electricity Settlements Company. The auction for the delivery year 2023/24 has cleared in the third round provisionally between £60 per KW/year.

The Government’s Capacity Market scheme, administered by LCCC, delivers energy security for Great Britain at a time of uncertainty in worldwide energy markets. The Capacity Market plays a key role in preventing scarcity of supply. Since its introduction in 2014 there have been zero stress events where the margin of electricity supply has become so tight that the Capacity Market has been called on, thus proving that it delivers security of supply at the lowest possible cost to the consumer.

T-1 Auction

Key outcomes:

  • Existing capacity increased by 49%.
  • New build generation decreased by 46%.
  • Proven DSR decreased by 40%.
  • Unproven DSR decreased by 27% compared to last year.
  • First time for Nuclear and offshore wind in T-1 auction.

Overall, the auction has resulted in increased awarded capacity of 14.4%.  The graph below highlights the technology breakdown:

  • Increase in wind (Onshore and Offshore) is 54MW compared to last year.
  • The total derated wind capacity 65MW to non-derated which is 689MW.
  • 157MW increase in storage.
  • 175MW decrease in Demand Side Response.
  • 760MW decrease in fossil fuels.

T-1 Auction - Technology Breakdown

Find out more about the Capacity Market from LCCC’s data portal here.