EirGrid has published the final results of the T-4 auction which was held on March 28th. There are no changes to the provisional results which were published on April 4th.
The final results have been approved by the Single Electricity Market Committee (SEMC) which is made up of representatives from regulators in Northern Ireland (the Utility Regulator) and Ireland (the Commission for the Regulation of Utilities) and two independent members.
The auction is a key element of the market and is designed to deliver wholesale electricity at the least possible cost. The T-4 auction also aims to encourage new investment and innovation, but only if it is the most economical solution. The auction procured sufficient capacity to meet security of supply for the period October 2022 to the end of September 2023. The auction secured a total of 7,412 megawatts (MW) of capacity. The auction clearing price was €46,150 per MW per year.
Of the 112 generating units that qualified to take part in the auction, 93 were successful. A total of €342 million of capacity payments will be paid during the period October 2022 to September 2023.
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 SONI in Belfast and EirGrid in Dublin and the upgraded market has been live since October 1st 2018.
For further information contact David Martin on 085 6030969.