Capacity Remuneration Mechanism 2022/23 T-1 Capacity Auction Parameters

Under the revised SEM arrangements, implemented in October 2018, capacity revenues are allocated by capacity auction for a relevant capacity year. Prior to each capacity auction, a number of capacity auction parameters must be set. The list of parameters to be determined by the Regulatory Authorities is described in paragraph D.3.1.3 of the Capacity Market Code.

This paper describes the SEM Committee’s proposals for the relevant parameters to apply in the 2022/23 T-1 capacity auction, scheduled to take place in October 2021. This is a supplementary auction to the 2022/23 T-4 auction held in March 2019. That auction procured 7,412MW of de-rated capacity.

Most of the parameters proposed are the same as those used in recent auctions, including the 2022/23 T-4 auction. However, the SEM Committee proposes to change the shape of the demand curve that is used in the T-1 22/23 auction.

The document can be found here