Huge interest in UK’s first ever energy capacity market auction

More than 500 electricity generators have applied to the UK Dept. for Energy (DECC) to take part in the first ever Capacity Market auction in December this year, with the amount of generation capacity prequalifying already far in excess of the total amount the Government plans to procure.

EDWARD DAVEYA total of 513 separate applications were received for the first auction, equating to nearly 70GW of de-rated capacity. This will ensure the auction is competitive and will secure our electricity supplies in the years ahead at the lowest possible cost to billpayers.

However, Scottish Power has announced that its Longannet coal-fired station which is the largest in Scotland – will not be taking part in the auction.

Over 62GW have already been accepted by National Grid as eligible to participate, the equivalent of around 20 new nuclear power stations. A further 5GW was initially unsuccessful but it is expected that the majority of these will be able to prequalify successfully following the dispute resolution process.

Those successful at pre-qualification included approximately 9GW of new capacity. 7GW of this is made up of 8 potential new large gas power stations. Of these, over 5GW was from the independent sector.

Energy and Climate Change Secretary of State Edward Davey said:

“At the same time as we’re building a new generation of clean, homegrown electricity supplies, we have to deal with an energy crunch caused by a legacy of underinvestment.

“The high level of interest in the first ever Capacity Market auction – from large and small generators, and from both established and emerging players in the market – shows that we’ll be able to deliver the capacity we need, and get a good deal for billpayers in the process.”


Pictured is Energy and Climate Change Secretary of State Edward Davey MP


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