Britain’s latest auction for back-up electricity cleared well below expectations but without many new gas projects securing agreements which are thought to be needed to help bridge the gap when coal and nuclear plants come offline next decade.
Thursday’s auction for 2021/22 supply cleared at 8.40 pounds ($11.71) per kilowatt (kW) per year, National Grid’s website showed, well below the 15 to 25 pounds range which analysts had forecast.
In December 2016, a similar auction for supply four years in advance (2020/21) cleared at 22.50 pounds/kW/year.
Out of the 50.4 GW of capacity agreements awarded, 48.4 GW was existing capacity and interconnectors. Medium and large-sized new gas projects exited the auction above the clearing price. Read More…