Provisional Results of T-4 Capacity Auction
SSE has been notified by Ireland’s System Operators of the Provisional Results of the first T-4 Capacity Auction, through which Capacity Contracts for 2022/23 are awarded four years in advance.
The Provisional Results are subject to approval by the Regulatory Authorities and are expected to be confirmed on 29 April.
The System Operators have provisionally awarded 7,412 MW of Total Capacity Contracts to electricity generators and demand side response units at an auction clearing price of €46,150/MW. These Capacity Contracts relate to the Capacity Year from 30 September 2022 to 30 September 2023.
SSE’s four thermal generation plants in Ireland each participated in this auction process, with contracts provisionally secured for its Great Island CCGT plant in Co. Wexford, as well as its two smaller peaker plants at Rhode in Co. Offaly and Tawnaghmore in Co. Mayo.
However, the Provisional Results indicate that SSE has been unsuccessful in securing a 2022/23 contract for its Tarbert Power Plant in Co. Kerry.
All four of SSE’s power stations have existing Capacity Contracts to generate energy through to September 2020, and each will have the opportunity later this year to secure further contracts for 2020/21 and 2021/22 in the T-1 and T-2 auctions.
Mark Hayward, SSE's Director of Operations and Maintenance for Thermal Energy, said:
“While we’re pleased to provisionally secure contracts for 2022/23 for our flexible plants at Great Island, Rhode and Tawnaghmore, we’re of course disappointed not to receive a contract for Tarbert.
“However, it’s important to remember that we have an existing capacity contract in place to generate electricity at Tarbert until September 2020, and further opportunities to secure contracts for 2020/21 and 2021/22, as well as 2022/23 itself. With emissions restrictions coming into effect from 2023, we know that the existing plant at Tarbert will have to close, however, we are actively looking at future development opportunities for the station.”