The government has confirmed its intention to hold the next Capacity Market auction in September 2022.
In a letter to National Grid Electricity System Operator (ESO), Energy, Clean Growth and Climate Change Minister Greg Hands said a T – 1 auction and T – 4will be held starting 1st September this year.
The T – 1 auction will be for delivery year 2023/24 and the T – 4 auction will be for delivery year 2026/27.
The Capacity Market aims to ensure the future security of Britain’s electricity supply “at the lowest cost to consumers”, with the auctions procuring the capacity required to meet peak demand through competition auctions held a year in advance.
The auction parameters will be set out in due course.