Notice
Full details of auction parameters and interconnector de-rating factors
Published 18 July 2022
© Crown copyright 2022
This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. To view this licence, visit or write to the Information Policy Team, »Ê¹ÚÌåÓýapp National Archives, Kew, London TW9 4DU, or email: [email protected].
Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned.
This publication is available at /government/publications/capacity-market-auction-parameters-letter-from-beis-to-national-grid-eso-july-2022/full-details-of-auction-parameters-and-interconnector-de-rating-factors
Table 1: Auction parameters
| T-1 Auction for delivery in 2023/24 | T-4 Auction for delivery in 2026/27 | |
|---|---|---|
| Target capacity | 5.8GW | 42.4GW |
| Demand curve: minimum capacity at price cap | 4.8GW | 40.9GW |
| Demand curve: maximum capacity at £0 | 6.8GW | 43.9GW |
| Reliability Standard | 3 hours LOLE | 3 hours LOLE |
| Net CONE | £49/°ì°Â/²â°ù | £49/°ì°Â/²â°ù |
| Price Cap | £75/°ì°Â/²â°ù | £75/°ì°Â/²â°ù |
| Price Taker Threshold | £25/°ì°Â/²â°ù | £25/°ì°Â/²â°ù |
| 15-year agreement threshold | N/A | £295/°ì°Â |
| 3-year agreement threshold | N/A | £150/°ì°Â |
| Indexation | N/A | 2021/22 |
Table 2: Interconnector de-rating factors
| Interconnector | Connection capacity (GW)[footnote 1] | T-1 auction 2023/24 Delivery Year [footnote 2] NG:ESO range (%) |
T-1 auction 2023/24 Delivery Year Recommended DRF (%) |
T-4 auction 2026/27 Delivery Year NG:ESO range (%) |
T-4 auction 2026/27 Delivery Year Recommended DRF (%) |
|---|---|---|---|---|---|
|
IFA (France) |
2 | - | - | 30-97 | 63 |
|
IFA2 (France) |
1.1 | - | - | 30-97 | 65 |
|
ElecLink (France) |
1 | - | - | 30-97 | 69 |
|
BritNed (Netherlands) |
1.2 | - | - | 51-92 | 61 |
|
Moyle (Northern Ireland) |
0.5 | - | - | 14-94 | 54 |
|
EWIC (Republic of Ireland) |
0.5 | - | - | 14-94 | 54 |
|
NemoLink (Belgium) |
1 | - | - | 31-95 | 64 |
|
NSL (Norway) |
1.4 | - | - | 84-100 | 83 |
|
VikingLink (Denmark) |
1.5 | - | - | 48-91 | 55 |