This week saw the release of the SEM Committee (SEMC) decision on T-1 2019/20 Capacity Auction Parameters and Enduring De-rating Methodology (SEM-18-030). This was then followed up by SEM-O releasing the Initial Auction Information Pack and qualification pack for the December auction. The first Capacity Remuneration Mechanism (CRM) took place in December 2017 for the T-1 2018/19 delivery year. The lower capacity price (than under the existing Capacity Payment Mechanism) and treatment of constraints emphasised the level of change in how capacity is allocated under the new trading arrangements.
This week’s blog discusses the impacts of the changes to the auction parameters for the T-1 2019/20.