Gas Benefits from GB Capacity Awards

The British capacity auctions held February 1 to encourage more power generating capacity has led to some 5782.9 MW being provisionally awarded a clearing price (subsidy) of £6/kW/year, about half being either combined-cycle gas turbines (CCGT) with 2215 MW, or combined heat and power (CHP) plants. A total of 10,663.717 MW entered the auction, of which 54.23% received capacity agreements for delivery in 2018/19, said power and gas grid operator National Grid. Figures below are rounded.

From those successful in this auction, 4,692 MW are existing plants and 642 MW are newbuild, with the rest being refurbished or unproven plants. 

SSE said it was among provisional awards, with its Peterhead gas-fired CCGT in northeast Scotland (1,044 MW) its only successful bid. The company explained that, in order to secure the revenue arising from the capacity market, generation capacity providers must produce electricity when the system requires it in 2018/19; failure to do so will result in penalties being levied. It said it had secured £6.3mn from the T-1 award.

Other large successful CCGT bids, all in England, were: Centrica’s Peterborough (235 MW), an EDF unit (438 MW), two Uniper-run CCGT units at Killingholme (each of 295 MW), and both of Irish ESB-owned Carrington Power's CCGT units near Manchester (each 405 MW).