RWE Generation statement on the T-1 UK capacity auction
This morning the Electricity Market Reform (EMR) Delivery Body, National Grid, announced that the UK capacity auction has cleared at £6.00/kW/yr. 5782.892MW of capacity has been secured for the UK for delivery in 2018/19.
National Grid has released a provisional list of the UK assets which have successfully secured an agreement, which you can view here. This information is still subject to Secretary of State approval. The auction ran from 30 January and closed on 1 February.
This provisional announcement suggests that the Grimsby A* ‘Newbuild’ Capacity Market Unit (CMU) did not secure an agreement in the T-1 capacity auction for delivery in 2018/19. Although our Grimsby A* site did not secure an agreement at this provisional stage, this result is aligned with our auction bidding strategy and does not affect the future operations of the site.
All of RWE’s other operational, eligible UK assets have already entered into Capacity Market Agreements for delivery in 2018/19 in the auction that ran in 2014 so were not part of this T-1 auction. We look forward to participation in the forthcoming T-4 auction next week.
RWE Generation represents security of energy supply and it can produce around 8.5 GW of electricity in the UK, where it operates some of the most modern and efficient plants in the country. As the second largest electricity generator, it produces around 15% of the UK’s electricity.
RWE Generation operates its plants safely, efficiently and on a cost-effective basis and has exciting plans to invest further in the UK including the development of other sites.
*Grimsby A is an embedded gas generation plant that came into operation in 2017