Third day of bidding in Capacity Market Early Auction
The third day of bidding has begun in the Capacity Market Early Auction which will secure backup capacity for next winter.
- Water Reform and Water Savings: Now’s the Time to Strike
- View customers as active participants in water sector, says Ross
- Liquidity will be ‘a real challenge’ for local energy markets
- ADSM and Peel Water become latest water retail licensees
- New Arc Rated Foul Weather Protection: How Scottish and Southern Electricity Network Engineers Benefit From GORE-TEX® PYRAD® Technology
The auction resumed this morning (2 February) in the ninth round of bidding, which covers the price range £35 to £30 per kilowatt per year (/kW/yr). Roughly 4GW of surplus capacity is still to drop out.
The “Dutch-style” descending clock auction, sees the asking price gradually reduced as bidders decide whether to accept or decline the offer. Once the remaining capacity matches the procurement target the auction clears and those still left are offered an agreement at the clearing price.
The procurement target for the auction was set at 53.6GW, but in practice the target actually varies slightly, with additional capacity being procured if the auction clears at a low price. Around 59.3GW of capacity entered the auction on Tuesday.
Yesterday’s bidding saw around 1GW of capacity exit the auction as the asking price fell from £55-£35/kW/yr.
Consultancy firm Smartest Energy has told Utility Week it expects the auction to clear at less than £25/kW/yr, putting it in line with the most recent four-year-ahead (T-4) auction in December, which cleared at £22.50/kW/yr.
Capacity Market Early Auction: Progress after second day of bidding
Source: National Grid
- Networks must collaborate on common smart tech standards Industry will otherwise face restrictive rules and regulations imposed by government
- Minister warns of EV impact on grid Demand side management is key, insist networks
- ‘Wrong’ to keep system operator role within National Grid Academics call for fully independent system operator integrated across whole energy system