Thursday 28 January 2016

UK secures 803MW of extra power for next winter

UK secures 803MW of extra power for next winter

The UK has secured more than 800MW of extra electricity capacity for next winter.

The Transitional Arrangements auction, run by National Grid, supports the government’s Capacity Market scheme and is an additional tool to keep the lights on.

It was opened on Tuesday to ensure the grid has sufficient power for the two winters before the Capacity Market delivery kicks in during winter 2018/19 “as margins are tighter due to plant closures”, the grid operator told ELN.

The amount auctioned was 900MW and despite an oversupply of capacity at 1,110.028MW, it was closed after securing 803MW.


A spokesperson from National Grid told ELN: “The demand curve is a safety mechanism or parameter designed to control payments/prevent paying too much. This is why 800MW was secured rather than 900MW.”

Around 72% of those that entered the auction received capacity agreements for delivery in 2016/17.

The clearing price stood at £27.50/KW.

Some of the companies that won the agreements include E.ON, Ameresco, Flexitricity, SmartestEnergy and Kiwi Power.

The news comes amid claims the UK could see brownouts or blackouts in the next year and engineers warning of a power supply crisis by 2025.

Written by

Bruna Pinhoni

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