Correspondence
Final auction parameters, T-1 and T-4 Capacity Market auctions
Published 30 January 2024
© Crown copyright 2024
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This publication is available at https://www.gov.uk/government/publications/capacity-market-auction-parameters-letter-to-national-grid-eso-january-2024/final-auction-parameters-t-1-and-t-4-capacity-market-auctions
| Parameter | T-1 auction for delivery in 2024-2025 | T-4 auction for delivery in 2027-2028 |
|---|---|---|
| Target capacity | 7.7GW | 44.0GW |
| Demand curve: Minimum capacity at price cap |
6.7GW | 42.5GW |
| Demand curve: Maximum capacity at £0 |
8.7GW | 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 | £325/kW |
| 3-year agreement threshold | N/A | £165/kW |
| Indexation | N/A | 2022-2023 |