The capacity market is designed to ensure that the electricity supply meets demand as more volatile renewable energy plants come into the mainstream market. There has just been a new date set in September for the capacity market auction.
During these auctions the bidders can win projects, that will secure our energy system for example at the last action SSE secured contracts for 912MW of hydro-electric and pumped storage capacity and 2.6GW of gas-fired capacity. The contract does not start until 2025 but when it does SSE’s director has said that their power station will continue to play a vital role in backing up renewable energy.
For This September’s auction they have set out for the T-1 to be delivered in 2023/24 and T-2 for delivery in 2025/26.
This auction is important to ensure the future of the UKs energy supply with the lowest cost to consumers. They need projects to be able to meet the growing demands of the country. Whilst clean energy is important if it is not secure, it can unsettle electricity prices.