Responding to the Provisional Clearing Price of £15.97/kw/year from the T4 Capacity Market auction, Paul Sanders, Generation Director at New Stream Renewables, a specialist consulting and support services group operating across renewable energy markets, commented:


“The T-4 Capacity Market surprised to the upside, with previous auctions clearing at £6.44/kw/year and £8.40kw/year respectively. The PCP of £15.97/kw/year provides a much-needed fillip to the flexible generation sector, which has found investment hard to come by in recent years in a market beset by uncertainty.


“These 15-year Government backed agreements will provide an important revenue stream to new non -intermittent assets, helping provide replacement capacity as old fossil fuel and nuclear plant close down.”


In the auction, 43.7GW won agreement, of which 78% was existing generation (81% in T-3) and 12% was interconnectors (13.2% in T-3). 1.3GW of coal won an agreement – this was Ratcliffe on Soar, likely the last coal station in UK, indicating a significant shift away from legacy generation.