Page 20 - Gi flipbook August 2018

PROTECTING

THE FUTURE

OF GAS PLANTS

David Gilchrist, Head of Gas and Electricity at in the T-4 auction was 50.4GW, but
DWF, asks whether it’s time the UK reconsidered the clear loser was large-scale gas
the capacity market plants, which dropped out of the
auction well in advance of the final
award price, with prices too low to
he latest T-4 capacity market news for securing energy supply through encourage investment in the sector.
auction finished at the new-build large-scale gas plants. This leads us to ask what role gas will
staggeringly low price of It is widely agreed that large-scale play in an energy mix dictated by the
£8.40 per kW, well below gas plants are the easiest and quickest capacity market?
Tanalyst predictions and the way to guarantee a reliable stream of
three previous T-4 auctions; the energy. But, as demonstrated in the UNINTENDED CONSEQUENCES
equivalent auction in 2017 saw prices most recent T-4 auction, the capacity OF THE CAPACITY MARKET
reach £22.50 per kW. While this market simply isn’t encouraging The capacity market was intended as a
significant drop may be good news for investment in this technology. The means of mitigating risk by allowing
the consumer, it spells nothing but bad aggregate de-rated capacity awarded power plant owners and developers to

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