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. Following the initial assessment of the results of that auction, the SEM Committee today, is publishing a parameters consultation for a T-4 auction for the 2025/26 capacity year. This document outlines the proposals made on the Parameters for this auction that feature within the Initial Auction Information Pack. |