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Capacity Market parameters for T4 auction for 2020/21, and early auction and transitional arrangements auction for 2017/2018

The Government has today published the parameters for the next Capacity Market auctions to ensure the UK has sufficient capacity to meet electricity demand.

The auction parameters letter sets out the target volume to be secured through the T-4 Capacity Auction for 2020/21, the early auction for 2017/18 and the DSR transitional arrangements auction, also for 2017/18. It also includes the de-rating factors for interconnectors. The final auction targets are based on the advice provided National Grid in the Electricity Capacity Report, which has been scrutinised by the panel of technical experts.

Today we are confirming that we will seek to secure:

  • 53.8GW in the early auction for delivery in 2017/18
  • 300MW of turn-down DSR in the transitional arrangements auction for delivery in 2017/18
  • 52GW in the T-4 auction for delivery in 2020/21 (with an additional 600MW in the associated T-1 auction)

The T4 target is some 6GW higher than in last year’s equivalent auction, in line with the Government’s announced intention to buy more capacity and buy it earlier.

Capacity Market auction parameters: open letter from BEIS to National Grid

Electricity Market Reform Panel of Technical Experts 2016 final report on National Grid’s Electricity Capacity Report 2016

A letter from Ofgem to DECC regarding interconnection and the Capacity Market

Letter from Amber Rudd to National Grid about second Capacity Market Auction, the 2017/18 Early Auction and the second Transitional Arrangement auction

Published 8 July 2016
Last updated 28 October 2016 + show all updates
  1. Auction parameters confirmed
  2. minor amendment
  3. First published.