Correspondence
Full details of auction parameters and interconnector de-rating factors
Published 22 July 2024
© Crown copyright 2024
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This publication is available at https://www.gov.uk/government/publications/capacity-market-auction-parameters-letter-from-desnz-to-eso-july-2024/full-details-of-auction-parameters-and-interconnector-de-rating-factors
Table 1: Auction parameters
| T-1 Auction for delivery in 2025/26 | T-4 Auction for delivery in 2028/29 | |
|---|---|---|
| Auction target capacity | 6.5 GW | 44.0 GW |
| Demand curve: minimum capacity at price cap | 5.5 GW | 42.5 GW |
| Demand curve: maximum capacity at £0 | 7.5 GW | 45.5GW |
| 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[footnote 1] | £340/kW[footnote 2] |
| 3-year agreement threshold | N/A[footnote 1] | £170/kW[footnote 2] |
| Indexation | N/A | 2023/24 |
Table 2: Interconnector de-rating factors
| T-1 auction 2025/26 Delivery Year | T-1 auction 2025/26 Delivery Year | T-4 auction 2028/29 Delivery Year | T-4 auction 2028/29 Delivery Year | ||
|---|---|---|---|---|---|
| Interconnector | Connection capacity (GW) | ESO range (%) | DRF (%) | ESO range (%) | DRF (%) |
| IFA (France) | 2 | - | - | 25-77 | 62 |
| IFA2 (France) | 1.1 | - | - | 25-77 | 63 |
| ElecLink (France) | 1 | - | - | 25-77 | 67 |
| BritNed (Netherlands) | 1.2 | - | - | 57-92 | 66 |
| Moyle (Northern Ireland) | 0.5 | - | - | 6-78 | 54 |
| EWIC (Republic of Ireland) | 0.5 | - | - | 6-78 | 54 |
| Greenlink (Republic of Ireland) | 0.5 | 12-58 | 49 | 6-78 | 54 |
| NemoLink (Belgium) | 1 | - | - | 48-88 | 67 |
| NSL (Norway) | 1.4 | - | - | 71-96 | 75 |
| VikingLink (Denmark) | 1.4 | - | - | 60-92 | 60 |
| Neuconnect (Germany) | 1.4 | - | - | 55-90 | 60 |