EirGrid has published the final results of the latest capacity auction, which ran at the end of December last year. There are no changes to provisional results issued on 21 December 2018. The auction performed as expected, delivering capacity to the island’s wholesale electricity market at the least possible cost.
Of the 105 generating units that qualified to take part in the auction, 100 submitted offers and 95 were successful. A total of €345 million of capacity payments will be paid during the period October 2019 to September 2020. Prior to the introduction of the auction process in 2017, annual capacity payments averaged in the region of €550 million.
An additional 492 megawatts (MW) of capacity was secured in this auction, at a reduced price of €41,719 per MW per year (down from €42,774 per MW in the previous auction). The additional capacity is required to meet an increase in demand triggered by economic growth.
The auction was designed by the electricity regulators in Ireland and Northern Ireland to ensure sufficient capacity is secured to meet demand across the island at all times.
The auction was run by the Single Electricity Market Operator, a joint venture between EirGrid and SONI (System Operator for Northern Ireland).
For more information:
Quick Guide to the Capacity Market and T-1 2019-2020 Final Results: https://www.sem-o.com/documents/general-publications/Quick-Guide-to-Capacity-Market-and-T-1-2019-2020-Auction-Results.pdf