Current± Briefings: What impact is the energy crisis having on the Capacity Market?

With the T-1 auction target set at higher than the pre-qualified capacity, all the capacity is set to clear at the maximum price of £75/kW/yr. Setting out the target, secretary of state Kwasi Kwarteng explained the unprecedented move “reflects the broader uncertainties within the power sector."

High gas prices and market volatility have led to an energy crisis that is filtering into all aspects of the sector in the UK. Balancing market costs were up 192% in November, the price cap was increased by 54% and 27 suppliers collapsed in 2021 alone.

In the latest in our Current± Briefings series, we talk to EnAppSys' director Paul Verrill about Kwarteng’s move to shore up capacity commitments, asking how that will protect energy security amidst high power prices and the cost of the move for the consumer.