Government pares back capacity auctions from 2018

The government will seek lower volumes of backup electricity capacity in the next two auctions than recommended by National Grid

Coal-fired plant closures that have already occurred have reduced market pressures on those remaining. Photograph: Stephen McCluskey/123RFThe government is to contract for a reduced volume of 50 gigawatts of backup electricity in the next capacity market auction, covering 2021/22. Requirements for 2018/19 have also been reduced.

The announcement was made in a letter to National Grid on 7 July, confirming that 50.1GW will be sought four years ahead in February 2018.

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