EDF Energy statement on capacity market auction
Units which secured one year agreements for the period October 2017 to September 2018 at a price of £6.95/KW are:
- Nuclear power stations at: Dungeness B, Sizewell B, Hinkley Point B, Heysham 1, Heysham 2, Hartlepool, Torness, Hunterston B
- West Burton B Combined Cycle Gas Turbine power station
- West Burton A coal power station, all units
- Cottam coal power station, all units
- Gas turbines at West Burton A coal power station
- Two demand side response agreements totalling 9.6MW
The capacity market has been designed by Government to make sure that there is enough electricity generating capacity available to meet peak demand. It also ensures a reliable supply of electricity at times when there is less wind and little or no contribution from solar power.
Customers benefit from the best possible price for capacity by having a range of technologies competing in the auction.
The capacity market supports EDF Energy’s investment in its nuclear, gas and coal generating plant. In particular, it underpins EDF Energy’s substantial investment in its low carbon nuclear power stations. This has helped improve their performance, expected lifespan and reliability, making a critical contribution to the UK’s security of supply.
EDF Energy’s coal stations still play a key role in providing security of supply until they can hand over to new low carbon generation. EDF Energy has already made big investments to make its coal plants fully compliant with all current emissions and environmental regulations.
In this auction, in addition to its generating assets, EDF Energy secured agreements for a total of 9.6MW of demand side response. This involves business customers being incentivised to reduce consumption or run on-site generation at times of system stress or of peak demand. Demand side response will play an important role in balancing the electricity supply system.
Image: EDF Energy statement on capacity market auction. Photo: EDF Energy