Demand response capacity to receive £27.50/kW/yr following Transitional Capacity Market auction

Following the first Transitional Capacity Market auction 803MW of demand response capacity is set to receive contracts at a price of £27.50/kW/yr, according to provisional results from National Grid. The delivery year is 2016/17.

Some 1,110.28MW of capacity entered the auction on 26 January. Of the capacity awarded contracts, 475MW was unproven demand side response (DSR) from 36 units. Nineteen existing generating units will provide 315MW of capacity while two new generating units – to be built by Citigen and Aggreko – will provide 13MW.

Among the DSR providers National Grid listed Tata Steel, Ameresco, Flexitricity, Kiwi Power and Smartest Energy. A DSR offering from Tempus Energy exited the auction.

Read the full results from the Transitional Auction for the 2016-17 delivery year

Subscribers: Log in to read Kiwi Power chief executive Yoav Zingher tell New Power about the challenges of bringing demand response into the GB market: “The T-1 auction has no guarantees whatsoever. The secretary of state can cancel it, or can increase or decrease the amount of capacity at her discretion” Click here to read the full interview

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