Capacity Market targets confirmed

The Government has confirmed the parameters for the next Capacity Market auctions to be held next year.

In a letter to the National Energy System Operator (NESO) it said the target capacity for the T-1 auction for the 2027-28 delivery year has been set at 5GW. 

For the T-4 auction for the 2030-31 delivery year total target capacity has been set at 41.4GW, of which 0.5GW will be set aside for the associated T-1 auction.

The government adopted the targets following recommendations made in the National Energy System Operator’s Electricity Capacity Report and an independent assessment by the Panel of Technical Experts.

The last T-4 auction saw clearing prices continue their downward trend with results for delivery year 2029/30 seeing 40.1 GW of capacity awarded at £27.10 per kW a year – less than half last year’s figure.

The T-1 auction for the 2026/2027 winter period secured 7.2 GW at a price of £5 per kW a year.