EirGrid has published the final results of the latest capacity auction for the Single Electricity Market held on the 27th of April. There are no changes to the provisional results which were published on May 5th.
The final results have been approved by the Single Electricity Market Committee (SEMC) which is made up of representatives from regulators in Ireland (the Commission for the Regulation of Utilities) and Northern Ireland (the Utility Regulator) and two independent members.
The capacity auction is a key element of the all-island wholesale electricity market and is designed to deliver a reliable electricity supply at the least possible cost. The auction also aims to encourage new and efficient power plants into market; but only if these are competitive and economical solutions. The auction procured sufficient capacity to meet security of supply for the period October 2023 to the end of September 2024.
This auction secured a total of 7,322 megawatts (MW) of capacity for the island.
Of the 124 generating units that took part in the auction, 115 were successful.
A total of €363 million of capacity payments will be paid to generators who were successful in this auction. Capacity payments are paid to generators to ensure they are available to meet the demand for electricity, especially at peak times. Successful bidders in the capacity auction will be paid during the year for each MW of capacity they sold to the market in the auction. The auction clearing price was €46,149 per MW per year.
Prior to the introduction of capacity auctions in 2017, annual capacity payments averaged in the region of €550 million.
The auction was designed by the Single Electricity Market Committee (SEMC) to ensure sufficient capacity is secured to meet demand across the island at all times.
The final results are available at www.sem-o.com/
EirGrid has also published the following documents on the SEMO website:
Note to editors:
The T-4 capacity auction is part of a series of changes made to the Single Electricity Market to increase cost efficiency and competitiveness. The improvements to the market have integrated the all-island electricity market with European electricity markets. The new arrangements maximise efficiency of electricity trading on interconnectors. It is also designed to encourage new investment and innovation.
The market was designed by the SEMC. This design was implemented by EirGrid in Dublin and SONI in Belfast and the upgraded market has been live since October 1st 2018.
T-4 auctions take place every year, with the next scheduled for January 2021.
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