On 7 May, the System Operators released the final results of the 2022-23 T-4 capacity auction, setting out the winners of agreements. While previous T-1 auctions are not comparable, the System Operators were satisfied that prices between the auction had been stable. The clearing price was €46,150/MW, for a total cost of €342mn. As we noted a few weeks ago in our blog ‘There is light that never goes out’ this is an important auction in signalling what capacity will seek to connect to the networks over a period of significant close-down of thermal assets: 1.6GW is expected to leave the system within five years.
Related thinking
Low carbon generation
What’s in store? Our analysis of the co-location development pipeline
Amid underlying volatility in wholesale power prices, opportunities for access to wider flexibility revenue streams, and the impact of price cannibalisation, the case for co-location for renewable energy assets is growing. As part of Cornwall Insight’s Renewables Pipeline Tracker service, a case study is included in each report’s release based...
Commercial and market outlook
Capacity, reform, and unlawful strategies: 5 things that happened yesterday
Capacity, reform, and unlawful strategies: yesterday was a busy day for energy geekery. The developments encapsulate the shorter and longer term challenges and uncertainties present in the energy market presently: Read the full article here
Commercial and market outlook
Two thirds of energy industry professionals think the market needs to be drastically reformed
A survey conducted of over one hundred leading energy market professionals from across the investment and advisory community, by Cornwall Insight, from the attendees of its Financing Net Zero forum, has shown nearly two thirds (63%) of people working in the energy industry1 believe the UK market needs to be...
Low carbon generation
A collection of resources on net zero – Net Zero Week 2022
For Net Zero Week 2022, we released a range of resources to help you on your journey to net zero. For convenience, we have put them all together in a handy Resource Report. To read the full collection of resources, please log in to your account or sign up for...
Home supply and services
Windfall taxes are not the only solution to the energy crisis
The energy market is in a state of transition, with geopolitical concerns threatening to undermine energy security and subsequent wholesale energy rises pushing up bills. It is inevitable that policymakers will look at how best to deliver an affordable energy system for consumers. The temporary, targeted energy profits levy, or...
Commercial and market outlook
Cornwall Insight responds to the announcement of an Energy Bill in the Queen’s Speech
The Queen’s Speech this week included a much-anticipated announcement that an Energy Bill will be introduced at some point over the next parliamentary session. The Bill is a logical conclusion of policy development in the period since the net zero commitment was made in the summer of 2019. It accommodates...
Low carbon generation
CfD Allocation Round 4 – let the competition begin
2022 is set to hold what could be the largest Contracts for Difference (CfD) auction to date, Allocation Round (AR) 4, with government aiming to secure around 12GW of new renewables through the scheme. It will see the re-introduction of Pot 1 technologies (“established” technologies such as onshore wind and...
Low carbon generation
Here we go again: Capacity Market auctions, what can we expect?
After recently issuing our latest Capacity Market Forecast, we wanted to highlight some of the key trends to look out for regarding the upcoming Capacity Market (CM) auctions being held in February 2022. This round of CM auctions begins with the T-1 for Delivery Year 2022-23 on 15 February followed...
