We welcome the Capacity Market T-1 provisional Auction results announced today for Delivery Year 2024/25. The auction cleared in the eighth round provisionally at the clearing price of £35.79/kW/year, this is a decrease from previous T-1 auctions, signalling increased competition which will enable low costs to consumers.
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.
The graph below shows the category breakdown:
Key outcomes:
- Existing capacity has increased by 34%
- Low Carbon (including Nuclear) has increased by 99%
- Proven DSR has increased by 80%
- Renewables have increased by 117%
- Fossil fuels continues to decrease on downward trajectory (3.8%) but not as much as last year (19.5%).
The technology breakdown:
- Offshore wind has increased by 130%, doubling from last year. This is the second year that offshore wind has entered the Capacity Market.
- Storage has increased by 5.5%, decreasing from last year (61%)
- DSR (proven & unproven combined) increased by 42.4%