RWE Generation statement on the 2019 T-1 UK capacity auction
This evening the Electricity Market Reform (EMR) Delivery Body, National Grid, announced that the UK capacity auction has cleared at £0.77/kW/yr, 3626.196 MW’s have been secured for the UK for delivery in 2019/20.
National Grid have released a provisional list of the UK assets which have successfully secured a conditional agreement, which you can view here. This information is still subject to Secretary of State approval. The auction ran from 11-12 June.
This provisional announcement suggests that Grimsby and Cowes 2 did not secure an agreement in the T-1 capacity auction for delivery in 2019/20. Although our Grimsby and Cowes site did not secure an agreement at this provisional stage, this result is aligned with our auction bidding strategy. Grimsby has a 15 year agreement from 2020-2035 and Cowes 2 has capacity agreements for 2020/2021 and 2021/2022.
All of RWE’s other operational, eligible UK assets have already entered into Capacity Market Agreements for delivery in 2019/20.
The UK Capacity Market has proven that it can successfully deliver security of supply at the lowest cost to consumers. We hope that Capacity Market payments are reinstated as soon as possible following an in depth investigation by the European Commission.
RWE stands for security of energy supply and provides flexible, firm capacity, making it a key partner to enable the UK to transition to a low carbon electricity future. We are the UK’s second largest generator, supplying around 10% of the UK’s electricity with 8.6GW of installed capacity. The portfolio includes the UK’s largest fleet of gas-powered stations, along with some coal and a small amount of biomass.
The transaction between RWE and E.ON will transform RWE into a leading European power generator for renewable energies, with a diversified portfolio of assets. Once complete, following the integration of E.ON and innogy’s renewable businesses, RWE would have over 9GW of renewable capacity globally, as well as a substantial project pipeline. RWE will become the 3rd largest renewable generator in Europe and the 2nd largest offshore wind owner in the world.