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Provisional results for GB T-4 2027/28 capacity auction

27 Feb 2024

The provisional results of the latest GB T-4 2027/28 auction were published on Tuesday 27 February with a total of 42,831MW in capacity agreements awarded to capacity market units at an auction clearing price of £65/kW.

SSE Thermal has provisionally secured agreements for 3,377MW of de-rated electricity generation capacity for the 12 months from 1 October 2027 to 30 September 2028.

This includes its Peterhead (1,081MW), Keadby 1 (692MW) and Medway (673MW) gas-fired power stations, as well as its smaller embedded plants at Burghfield (44MW) and Chickerell (44MW). An agreement was also secured at Marchwood (843MW), in which SSE owns a 50% stake and receives 100% of the economic benefit from capacity agreements.

In addition, Seabank Power Station, in which SSE holds a 50% stake and receives half of the economic benefit from capacity agreements, also secured an agreement for 1,130MW of de-rated capacity. Triton Power, which is jointly owned by SSE Thermal and Equinor, received contracts for its Saltend Power Station (1,007MW) and Indian Queens Power Station (132MW).

Catherine Raw, Managing Director of SSE Thermal, said: “Flexible power plays a crucial role in our electricity system and these agreements will allow our fleet to support security of supply by providing vital backup to renewables. Today’s auction falling short of its target capacity** reinforces the need to push forward with the next generation of flexible power generation to ensure we meet the looming capacity challenge while rising to the low-carbon opportunity. And as these auctions begin to increasingly shape what the power system will look like towards the end of the decade, it’s essential that they begin to deliver capacity at scale that is either low-carbon or capable of rapid decarbonisation.”

The provisional results are subject to confirmation by the Secretary of State for Energy Security and Net Zero (DESNZ).

*A de-rating factor is applied to all capacity according to rules set by the UK Government.

** The published target capacity for the auction was 44GW with a total of 42.831GW awarded provisional capacity agreements