Ofgem analyses 2015 capacity market auction
The regulator has released its second Annual Report on the Operation of the Capacity Market in 2015, covering the T-4 Auction last December and the Transitional Auction in January. The report showed that 379 capacity market units (CMUs) prequalified for the T-4 Auction (delivery for 2019-20), with a final capacity of 46.4GW awarded at a clearing price of £18/kW/year. The target was 44.7GW, which Ofgem took as indicating considerable competition for entrants. Demand-side response (DSR) participation in the auction increased, but was still low at only 28 CMUs, while three interconnectors also took part, offering 2.4GW of de-rated capacity.