Lord Rowlands – 2016 Parliamentary Question to the Department for Energy and Climate Change

The below Parliamentary question was asked by Lord Rowlands on 2016-06-08.

To ask Her Majesty’s Government what Capacity Market auctions have been held to date under the Energy Act 2013, and what were the price and terms of the successful bids at each auction.

Lord Bourne of Aberystwyth

Three Capacity Market auctions have been held so far. Two market-wide, four-year ahead (T4) auctions were held in December 2014 (for delivery in 2018/19) and December 2015 (for 2019/20), clearing at £19.40/kW and £18.00/kW respectively, and securing 49.3GW and 46.4GW of capacity for delivery in those years. A smaller-scale Transitional Arrangements auction, focused solely on the Demand Side Response (DSR) sector, was held in January 2016, securing 803MW of DSR for 2016/17 at a clearing price of £27.50/kW. Winning bidders obtain Capacity Market Agreements, whose terms are established in law by the Capacity Market regulations and rules. Winning bidders and the volume of their individual agreements are published on National Grid’s CM register.

Results for the three auctions held so far are attached.