Indexation of Capacity Payments Decision Paper

11 May 2023

The SEM Committee is today, 11 May 2023, publishing a Decision Paper on Indexation of Capacity Payments, which was consulted on in SEM-23-014.

The SEM Committee has decided, given the exceptional levels of inflation following the T-3 24/25 and T-4 25/26 Capacity Auctions, to apply indexation to capacity payments for multiyear new capacity awarded in these two auctions. This indexation will be subject to risk-sharing arrangements.

The SEM Committee intends to issue a more detailed response document in the coming weeks, summarising non-confidential responses received and setting out a more detailed explanation for its decision.

Link to decision paper:
SEM-23-038 - Indexation of Capacity Payments Decision Paper | SEM Committee

Related articles:

SEM-22-071 Call for evidence regarding the impact of inflation on delivery of new Capacity Market projects

SEM-23-014 Consultation and Call for further Evidence on Indexation of Capacity Payments