Full details of auction parameters and interconnector de-rating factors
Published 18 July 2022
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This publication is available at https://www.gov.uk/government/publications/capacity-market-auction-parameters-letter-from-beis-to-national-grid-eso-july-2022/full-details-of-auction-parameters-and-interconnector-de-rating-factors
Table 1: Auction parameters
| T-1 Auction for delivery in 2023/24 | T-4 Auction for delivery in 2026/27 | |
|---|---|---|
| Target capacity | 5.8GW | 42.4GW |
| Demand curve: minimum capacity at price cap | 4.8GW | 40.9GW |
| Demand curve: maximum capacity at £0 | 6.8GW | 43.9GW |
| Reliability Standard | 3 hours LOLE | 3 hours LOLE |
| Net CONE | £49/kW/yr | £49/kW/yr |
| Price Cap | £75/kW/yr | £75/kW/yr |
| Price Taker Threshold | £25/kW/yr | £25/kW/yr |
| 15-year agreement threshold | N/A | £295/kW |
| 3-year agreement threshold | N/A | £150/kW |
| Indexation | N/A | 2021/22 |
Table 2: Interconnector de-rating factors
| Interconnector | Connection capacity (GW)[footnote 1] | T-1 auction 2023/24 Delivery Year [footnote 2] NG:ESO range (%) |
T-1 auction 2023/24 Delivery Year Recommended DRF (%) |
T-4 auction 2026/27 Delivery Year NG:ESO range (%) |
T-4 auction 2026/27 Delivery Year Recommended DRF (%) |
|---|---|---|---|---|---|
|
IFA (France) |
2 | - | - | 30-97 | 63 |
|
IFA2 (France) |
1.1 | - | - | 30-97 | 65 |
|
ElecLink (France) |
1 | - | - | 30-97 | 69 |
|
BritNed (Netherlands) |
1.2 | - | - | 51-92 | 61 |
|
Moyle (Northern Ireland) |
0.5 | - | - | 14-94 | 54 |
|
EWIC (Republic of Ireland) |
0.5 | - | - | 14-94 | 54 |
|
NemoLink (Belgium) |
1 | - | - | 31-95 | 64 |
|
NSL (Norway) |
1.4 | - | - | 84-100 | 83 |
|
VikingLink (Denmark) |
1.5 | - | - | 48-91 | 55 |
-
Connection capacity values based upon the NG:ESO Interconnector Register, available at: https://data.nationalgrideso.com/connection-registers/interconnector-register ↩
-
For the T-1 auction, all the interconnectors expected to be operational for 2023/24 already have interconnector de-rating factors set and hold capacity agreements for the 2023/24 Delivery Year. ↩