Insight
GB capacity market prices highlight a tightening market: Key takeaways from the 2022 T-1 & 4 auction results
Report summary
The T-1 and T-4 Capacity Market auctions for the GB power market both cleared at record prices in recent weeks. A shortage of bidders saw the highest possible price outcome in the T-1 round whilst upcoming plant retirements are re-balancing the make-up of capacity entering the subsequent T-4 round. In short, new-build batteries and smaller, more flexible assets enjoyed significant success while existing nuclear’s share of contracted capacity continued to wane and new-build CCGTs once again failed to gain traction. How do contracted volumes and clearing prices stack-up against previous auctions? What are the storage durations of winning battery projects? And finally, what can we take away from the set of results?
Table of contents
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The latest auction rounds for the GB power market have seen batteries enjoy significant success while new-build CCGTs once again failed to gain traction.
- A shortage of bidders saw the highest possible price outcome in the T-1 round
- Upcoming plant closures shaped the T-4
- Who were the biggest winners?
- What was not successful (or chose not to compete) is also significant
- What are the key takeaways?
Tables and charts
This report includes 4 images and tables including:
- Capacity price by delivery year
- Capacity awarded by supply type (all rounds to-date)
- New-build capacity awarded by supply type (all rounds to-date)
- Winning battery storage by duration
What's included
This report contains:
