The T-1 2021/22 Capacity Market contracts, which start in October 2021, cleared in round 6 of the auction at £45 per de-rated kW yesterday. The auction awarded 2.3GW after 2.0GW exited the auction, the majority of which related to the West Burton Power Station (1.8GW) which is due to close by 2025. The auction did see the Ratcliffe unit 4 coal-fired station take a contract. The auction saw 295MW awarded to the East-West Interconnector in Ireland. Gas accounts for over half of all volume awarded and the majority of contracts awarded to New Build generation. Limejump were delighted to see 0.5GW of renewable and DSR contracts winning a contract including the large onshore windfarm, Crossdykes, and the Minety Battery units optimised by Limejump. At these levels, the market is definitely providing a signal for flexibility. We are likely to see more interest in the T-1 auction next year, even at low volumes.
Now on to the T-4 auction next week where 53GW will compete for the 40.1GW required from the auction.