The latest capacity market auction – designed to secure capacity for four years ahead – cleared today at £18.00/kW. The provisional results show the following EDF units secured one-year agreements for the period October 2024 to September 2025: 4 nuclear units (2 Sizewell B units, Torness Unit 2 and Heysham 2 Unit 8) All 3 West Burton B units. 2 Pivot Power new build battery units (Cowley and Kemsley). In addition 2 Pivot Power new build battery units (Coventry and Bustleholme) have been provisionally awarded 15-year agreements for the period October 2024 to September 2039. EDF chose not to enter any of the units at Heysham 1 or Hartlepool nuclear power stations into this auction. The current scheduled closure date for both stations is Q1 2024. Dungeness B Unit 22 also did not enter into the auction. Under the capacity market rules, for it to qualify it would have had to generate within the previous 2-year window, which it has not. Dungeness B has unique technical challenges and is currently scheduled to restart in May this year.
EDF 10th March 2021 read more »
The U.K.’s power generation mix will see a dramatic shift from 2024 as output from its nuclear units is forecast to fade out sooner than anticipated. Electricite de France SA failed to secure agreements for half of its nuclear fleet in a government-led auction to keep capacity available in 2024-2025 this week. While some of the units are expected to close by 2024 several aren’t and their future looks uncertain. The future capacity has been crowded out by cables that import power from Europe. It’s likely the U.K. needs nuclear power as a low carbon electricity source to help meet its commitment to zero out emissions by 2050. Demand for power is set to double by then as heating and transport sectors electrify. Additionally, the huge program of offshore wind the U.K. is planning to roll out within nine years will need a reliable back up for when the wind stops blowing. Nuclear generation is designed to run around the clock whereas power interconnectors flow in both directions depending on price and supplies aren’t guaranteed. Nuclear capacity that’s guaranteed by a contract is set to decline 75% by 2024 from today, according to BloombergNEF data.
BNN Bloomberg 11th March 2021 read more »
The T-4 Capacity Market auctioned closed yesterday in its twelfth round, with 40819.895MW awarded agreements. It cleared at £18//kW/year, a small jump from last year’s T-4 auction which cleared at £15.97/kW/year. In total, 491 Capacity Market Units were awarded contracts, with gas continuing to dominate. It accounted for 44.81% of the CMUs, with 220 units contracted to provide capacity in 2024/25. This was followed by demand side response (DSR), which represented 27.7% or 136 of the contracts, and then battery storage (6.52% or 32) and hydro (6.11% or 30). Significantly, this was the first year that coal could not compete, as all assets are set to be decommissioned ahead of the government’s 2024 ban. There was, however, a jump in the amount of gas assets accepted from last year, with CCGTs picking up 41.92% or 18,341.537MW last year, compared with 26,446.447MW in this week’s auction. Batteries continued to grow their share of the market, winning 251.98MW of capacity, more than double the 117.0237MW awarded in last year’s auction. This included the likes of Pivot Power, Anesco, npower, Thrive Renewables, Gigabox and Gridserve being awarded contracts.
Current 11th March 2021 read more »
Drax has won subsidies worth £230 million to support the building of three new gas-fired power stations under a government scheme designed to keep the lights on. The company, which aims to be carbon-negative by 2030, said it would now consider selling the projects. Last month Drax scrapped plans to build Europe’s largest gas-fired power plant, a 3.6-gigawatt project at Selby in North Yorkshire. However, it retained options to build four 299-megawatt gas plants at other sites in Britain and yesterday it said that it had won subsidies to help to build three of them through the government’s capacity market scheme, intended to ensure supply at times of high demand.
Times 12th March 2021 read more »