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National Grid recommends cuts to looming Capacity Market auction targets

National Grid has recommended that targeted capacity for both the T-1 2018/19 and T-4 2021/22 Capacity Market auctions be cut.

In an update published this morning, the System Operator (SO) said that it had reached the decision in light of various new pieces of information and insight, not limited to December’s prequalification results, adjustments to the volume of autogeneration capacity outside of the CM and adjustments to its view of underlying peak demand during base case average cold spells.

In total, National Grid has recommended that the T-1 2018/19 auction procure 4.9GW of capacity, a reduction of 1.1GW, and the T-4 2021/22 auction procure 49.5GW of capacity, down 600MW.

However the SO also noted that further changes may also be made in advance of the T-1 2021/22 auction pending any changes to market conditions.

Those recommendations will require sign-off from the energy secretary Greg Clark, or whoever replaces him at the helm of the Department for Business, Energy and Industrial Strategy should Clark move in a rumoured cabinet reshuffle.

Last month National Grid published its prequalification results for both auctions, confirming that a total of 15.58GW of generators had been prequalified to compete in the T-1 auction and 91GW of capacity had been either prequalified or conditionally prequalified to compete in the T-4 auction.

The auctions are still slated to take place in the coming weeks, with the T-1 auction scheduled for 30 January and the T-4 auction for 6 February.