2016 Capacity Market Auction | KPMG | UK

2016 Capacity market auction – dawn of a new electricity market?

2016 Capacity market auction

The results of the December 2016 T-4 auction and what it means for energy businesses.

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2016 Capacity Market Auction

A big boost for storage and DSR...

The 2016 Capacity Market auction has gone some way towards realising Secretary of State Greg Clark’s vision to “create the most efficient, most productive electricity system in the world” with 2 GW of capacity requirement in 2020-21 fulfilled by distributed flexible technology. 

Diesels warned off...

Diesel generators deterred from either bidding, or bidding aggressively, due to Ofgem’s Embedded Benefits Review and Defra consultation on Air Quality regulations. 

Limited success on new build Combined Cycle Gas Turbine (CCGT)...

The auction also brings to light the competition faced by CCGTs in the current auction structure.

Other implications for existing plants, costs to conumers and uncertainities can be found in the PDF. 

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