UK capacity auctions for 2020-2021 have seen some 52,425.302 MW of capacity awarded, with CCGT capacity accounting for roughly 43% of total capacity, according to the previsional results published by National Grid.
The results show some 22,596 MW of gas-fired capacity was awarded, against 7,878 MW of nuclear, 6,090 MW of coal/biomass and 4,407 MW of CHP and auto-generation, among others.
The capacity auction for delivery in 2020/2021 was concluded on December 8. The auction's clearing price was £22.50 kW/year.
A total of 69,777.05 MW entered the auction, the grid operator said.
A mixture of new and existing capacity was procured, with 4,779.405 MW of the volume of capacity agreements awarded to new or refurbishing capacity.
Moreover, a total of 17,351.748 MW exited the auction above the clearing price, with the technology type exiting the largest overall volume of capacity from the auction being CCGT (9,763 MW), National Grid said.
SSE, EDF Energy, RWE, Centrica, E.ON and Scottish Power were among the companies provisionally awarded capacity agreements.
"5.8 GW of existing capacity exited the auction above the clearing price and is now at increased risk of financial closure as a result in our view," analysts at Barclays were quoted by Reuters as saying. Furthermore, "it appears that the only successful 'new' large (gas) projects were extensions or significant refurbishments of existing sites, thereby reducing investment cost requirements," the Barclays analysts said.