RWE Generation statement on the latest UK capacity auction
As provisionally announced on 3 February, it has now been confirmed that the additional early auction and fourth UK capacity auction has cleared at £6.95kW/yr. 54,433.634 MW have been secured for the UK for delivery in 2017/18.
National Grid has released the final results of this year’s early auction, and a list of the UK assets that have successfully secured a contract can be viewed within Appendix A of the report here link Publishing of these final results confirms that the Secretary of State has not annulled the results and they are now final. The auction ran from 31 January and closed on 3 February.
As expected RWE Generation secured contracts for all of the sites that were entered into the auction - a total of 7900.7MW (derated capacity). This means we have 7900.7MW of capacity agreements for the early delivery 2017 delivery year.
This year will see one of the tightest generation margins in recent years, the procured capacity will ensure the country has adequate supply available for the coldest months.
RWE Generation can produce around 9,000 MW of electricity and operates the most efficient gas fleet in the UK. The volatile market conditions for conventional generation power plants have continued during 2016. Operations remain difficult, however the Capacity Market has provided some stability moving forward.
RWE Generation will continuously look for opportunities to develop and look for efficiencies and cost saving across its business.