Parameters Consultation for the T-4 2026/27 Capacity Auction
The SEM Committee have decided to extend the deadline for submission of responses to Close of Business on 22nd June 2022.
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, nine CRM auctions have run successfully, securing capacity for up to four years in advance of delivery. The most recent auction ran in March 2022.
The SEM Committee today, is publishing a parameters consultation for a T-4 auction for the 2026/27 Capacity Year. This document outlines the proposals made on the Parameters for this auction that feature within the Initial Auction Information Pack. Also published is an accompanying information note from the TSOs, examining issues relating to derating of unit capacities in the auction.