OREANDA-NEWS. December 14, 2015. SSE plc has provisionally secured agreements to provide a total of 3,150MW (megawatts) of de-rated electricity generation capacity from October 2019 to September 2020 at a price of ?18/kW (kilowatt) as a result of the GB Capacity Market Auction process, the provisional results of which were published today. The final outcome of the Auction is subject to confirmation by the Secretary of State for Energy and Climate Change.  

This means 2,972MW of SSE’s de-rated capacity did not secure an agreement, including Fiddlers Ferry and Peterhead Power Stations.

The SSE capacity which has provisionally secured an agreement comprises:

  • 855MW of hydro electric and pumped storage plant;
  • 2,252MW of gas-fired and embedded power generating plant; and
  • 43MW of demand-side response.

To secure the revenue arising from the Capacity Market, providers of generating capacity will have to produce electricity when the system requires it in 2019/20; failure to do so will result in penalties being levied.

The results will not impact existing operations at any of SSE’s operational stations, all of which will be available this winter.

SSE will continue to analyse market conditions and opportunities for 2016 and beyond including future Capacity Market auctions at both the T-4 and T-1 stages; future SBR tender rounds; contracts with National Grid; and business-as-usual operation in the market.

Martin Pibworth, SSE’s Managing Director, Wholesale, said:
“SSE has consistently argued that an effective Capacity Market is an important additional tool in helping National Grid and the Department of Energy and Climate Change in discharging their responsibility for security of electricity supply.

“The Capacity Market, now in its second year, is designed to keeps the lights on at the lowest cost to the customer whilst ensuring generators are fairly remunerated for the service they provide to help meet the peaks in customers’ requirement for electricity.

“Whilst some of our plant was unsuccessful in securing an agreement this time round it doesn’t affect existing operation at our sites.  The Capacity Market is just one of multiple options available to existing plant. We will continue to analyse market conditions and opportunities for all our plant going forward.”