The provisional results for the Capacity Market T-4 Auction were announced today for Delivery Year 2027/28. The auction cleared in the second round at £65.00/kW/year, this is an increase from previous T-4 auctions.
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 pivotal role in preventing scarcity of supply. Since its introduction in 2014, there has not been a stress event (where the margin of electricity supply has become so tight that the Capacity Market has been called on), demonstrating the scheme’s success in delivering 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 5%, overall decrease in awarded capacity by 0.43%
- Low carbon (including Nuclear) has increased by 12%
- Proven DSR increased by 75%
- Renewables (does not include Nuclear) increased by 16%
- 362MW decrease in fossil fuels
Technology breakdown:
- Onshore wind increased by 102%
- DSR (proven and unproven) increased by 20% (188MW)
- Total amount of hydro is 1049MW
- Battery Storage decreased by 21%