The Capacity Remuneration Mechanism is designed to ensure that the demand for electricity is always met. This is achieved through a series of auctions, run at varying timeframes in advance of capacity delivery. New investment and existing generation capacity compete to ensure payments closely reflect the value provided by the capacity and deliver the best outcome for consumers.
Longer term auctions send necessary entry signals for new investment and innovation in order to deliver a diverse fuel mix and ensure security of supply.
To date, seven CRM auctions have run successfully, securing capacity for up to four years in advance of delivery. The most recent auction ran in January 2021 and following review and analysis of the provisional results, will be put to the SEM Committee for approval at the end of February 2021.
Following the initial assessment of the provisional results of this auction, the SEM Committee is publishing a parameters consultation for a T-3 auction for the 2024/25 capacity year, along with the auction timetable. This will allow further competition between existing capacity and potential new investment that can deliver the required capacity competitively for this capacity year.
The deadline for submitting a response on the Parameters Consultation to the RAs is 15 April 2021 and responses sent to Kevin Baron (Kevin.Baron@uregni.gov.uk) and Billy Walker (Billy.Walker@uregni.gov.uk).
Parameters Consultation for the T-3 2024/25 Capacity Auction
11 February 2021