Executive Summary:

• The T-4 Capacity Market auction for delivery year 2028/29 took place on Tuesday 11th March 2025.-
• The auction cleared at a price of £60/kW/year - the third highest price ever.
• A record high amount of battery capacity was awarded contracts based on both connection and de-rated capacities.

Subscribers to Modo Energy’s Research will also find out:

• What caused the auction to clear at £60k/MW/year
• A breakdown of the technologies that won contracts
• What the value of a T-4 2028/29 Capacity Market contract is for battery energy storage systems and how this compares to previous auctions.
• Which owners and developers won contracts - and which of these saw the highest capacity.

1. The T-4 Capacity Market auction cleared at £60/kW/year

The auction cleared in bidding round 3 at £60/kW/year. 44.7 GW of capacity entered the auction, which had a target of 43.7 GW. This meant there was an excess of just 1 GW. Overall, the auction cleared below the target, with 43.0 GW contracted.