Capacity Market 2018: Results, implications and potential policy reforms – Thursday 15 March 2018
The annual Capacity Market (CM) auction was first introduced in 2014 as part of the government’s Electricity Market Reform package to ensure security of supply within the GB system by paying developers a fixed payment for their capacity. Against a backdrop of falling demand, competitive bids by DSR and interconnectors resulted in the latest 2017 T-4 CM auction clearing at a lower price than previous auctions.
In this session, Aurora examined the results of the latest T-4 CM auction and future implications, seeking to address the following questions:
- Who were the winners and losers of the fourth auction?
- How did each technology bid in the CM auction, and why did it result in such a low clearing price?
- What are the most likely outcomes of future auctions?
- Is there a possibility of renewables participating in the CM with the recent shift in focus towards subsidy-free renewables? What are the key legislative challenges for allowing this to happen?
If you would like to listen to the recording, please get in contact