One of the UK’s schemes aimed at ensuring there is enough electricity supply during during the winter hopes to attract 45.4GW of capacity.
The second Capacity Market auction for winter 2019/2020 will take place in December this year.
Under the scheme, power plant operators will be paid to provide electricity at short notice.
Energy Secretary Amber Rudd outlined the capacity auction parameters in a letter to National Grid today, which includes opening it up to interconnectors – initially announced in December last year.
The letter states: “The next step for NG [National Grid] is to begin the process of reviewing commercially available network models and to engage with GB industry and interconnector stakeholders to get their views on the markets to which GB is connecting.”
The auction will have a price cap of £75/kWh a year, with the 15-year minimum threshold being £225/KW and three-year minimum threshold at £130/KW.
The UK’s first capacity auction, held in December last year to cover the winter of 2018/19, cost the government almost £1 billion.