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Capacity Market parameters for T4 auction for 2021/22, and T1 auction for 2018/2019

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

• From: Department for Energy Security and Net Zero and Department for Business, Energy & Industrial Strategy
• Published: 7 July 2017

The auction parameters letter sets out the target volume to be secured through the T-4 Capacity Auction for 2021/22, and the T-1 auction for 2018/19. It also includes the de-rating factors for interconnectors. The final auction targets are based on the advice provided by National Grid in the Electricity Capacity Report, which has been scrutinised by the panel of technical experts.

Today we are announcing that we will seek to secure:

• 50.1GW in the T-4 auction for delivery in 2021/22 (with an additional 400MW set aside for the associated T-1 auction)
• 6GW in the T-1 auction for delivery in 2018/19

The T-4 target is consistent with the ECR analysis. The T-1 target is consistent with PTE advice, which suggested a small 300MW reduction on the recommendation in the ECR analysis.

Letters and reports

• Capacity Market auction parameters: open letter from BEIS to National Grid, July 2017
  • 7 July 2017
  • Correspondence
• Electricity Market Reform Panel of Technical Experts 2017 final report on National Grid’s Electricity Capacity Report 2017
  • 7 July 2017
  • Guidance

Published 7 July 2017