The UK’s capacity market auction for 2027-2028 – designed to pay power producers to provide additional capacity to the grid in times of high demand – cleared at a record-high price for a four-year-ahead auction. The clearing price at the auction on Tuesday was $82.20 £65.00 per kilowatt kW per year - the highest ever for an auction that has been held four years in advance, according to the provisional results published by National Grid’s EMR. A total of 42.
Early this month, Bloomberg reported, quoting estimates from commodity research firm ICIS, that the four-year-ahead T-4 capacity market auction, awarding contracts to generators to have a power supply available at peak demand periods, could clear at a price as high as $86 £68 per kilowatt per year. Before this week’s auction, the previous record-high for the four-year-ahead T-4 capacity was set at the auction last year, at a price of $80 £63 per kW per year.