22
December
2015
|
00:00
Europe/Amsterdam

RWE Generation statement on the second UK capacity auction

As provisionally announced on 11 December, it has now been confirmed that the second UK capacity auction cleared at £18.00kW. 46353.569 MW has been secured for the UK for delivery in Q4 2019.

National Grid has released the final results of the 2015 capacity auction, and a list of the UK assets that have successfully secured a contract can be viewed within Appendix A of the report here.Publishing of these final results confirms that the Secretary of State has not annulled the results and they are now final.

RWE Generation has secured contracts for all of the sites that were entered into the auction - a total of 8054 MW (derated capacity), with the exception of one unit at Cowes Power Station (66MW). This means we have 7988 MW of capacity agreements for the 2019/20 delivery year. We now need time to assess the impact of the auction on our business and on the market.

RWE Generation can produce around 9,000MW of electricity and operate the most efficient gas fleet in the UK. However due to factors including the difficult market conditions, during the first nine months of 2015, the UK generation business has made a substantial loss.