The Transitional Arrangements auction has closed securing 803MW electricity capacity for winter 2016-2017 at a clearing price of £27.50/KW.
The auction, which supports the Capacity Market auction, is run by National Grid and is one of the many tools in place to manage the system and keep the lights on. It offers targeted support to Demand Side Response to encourage enterprise and increase levels of participation before full Capacity Market delivery in 2018/19.
The role of transitional auctions was set out in the Electricity Market Reform policy paper published in 2014 and the timing of the auctions was announced in June 2015. As this is an additional tool the amount auctioned is significantly lower than the amount bid for during the Capacity Market.
Further information on the Transitional Arrangements auction.