Correspondence

Final auction parameters, T-1 and T-4 Capacity Market auctions

Published 11 February 2025

© Crown copyright 2025

This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. To view this licence, visit nationalarchives.gov.uk/doc/open-government-licence/version/3 or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: psi@nationalarchives.gov.uk.

Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned.

This publication is available at https://www.gov.uk/government/publications/capacity-market-auction-parameters-letter-from-desnz-to-neso-february-2025/final-auction-parameters-t-1-and-t-4-capacity-market-auctions

Parameter T-1 auction for delivery in 2025/26 T-4 auction for delivery in 2028/29
Target capacity 7.5 GW 43.7 GW
Demand curve: Minimum capacity at price cap 6.0 GW 42.2 GW
Demand curve: Maximum capacity at £0 9.0 GW 45.2 GW
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

  1. Multi-year agreements are not awarded in the T-1 auction.  ↩ ↩2

  2. Multi-year agreement thresholds are adjusted from the previous T-4 value (for the 2027/28 delivery year) for inflation, indexed to the 2023/24 inflation level, and rounded to the nearest £5. ↩ ↩2

Back to top