Capacity market auction cleared at an all-time high price

Britain’s Capacity Market auction secured 42.4GW for the delivery year 2025-26 at a record price of £30.59 per kW per year

Big Zero Report 2022

Price for the T-4 Capacity Market auction for the delivery year 2025-26 has cleared at £30.59 per kW per year.

The Capacity Market is a mechanism designed to ensure that electricity supply continues to meet demand as more volatile renewable generation plants come on stream.

Analysts suggest that is an all-time high price following the previous record in the T-1 auction of £75kW announced last week.

The total quantity of De-Rated Capacity procured in the T-4 Capacity Market auction is 42.4GW.

EnAppSys Director Paul Verrill said: “Battery project winners are the biggest news in this auction, with many new-build battery projects having chosen the year with the highest ever clearing price for a T-4 auction to come online.

“This is a major boost in particular for those units that were able to secure long-term contracts.”

SSE has confirmed that it has secured contracts for the 12 months from 1st October 2025 to 30th September 2026.

This includes 912MW of hydro-electric and pumped storage capacity and 2.6GW of gas-fired capacity.

Martin Pibworth, Group Energy and Commercial Director at SSE, said: “Our flexible hydro and thermal power stations continue to play a vital role in backing up renewable generation and ensuring security of supply and we are pleased to have provisionally secured these contracts for 2025.2026.

“As we transition to net zero, we need to find ways to ensure this essential flexible generation capacity is low carbon in its right.”

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