TA auction expected to clear at £25/kW
SmartestEnergy has said that it expects the Transitional Arrangements (TA) auction, which begins on Wednesday 22 March, to clear at around £25/kW. The auction is seeking to deliver 300MW of turn-down demand-side response (DSR) capacity for 2017-18. The company said that the level of pricing would be consistent with that delivered in last year’s TA auction, and that this “would start to give aggregators and customers some confidence” in the business case for DSR. But it warned that the growth of DSR could suffer further when it had to compete against fossil fuel power stations in the capacity market, and that steps needed to be taken in order to “level the playing field”.