Executive Summary:

• The T-1 Capacity Market auction for 2025/26 cleared at £20/kW/year, the lowest clearing price in five years
• Batteries won contracts for a record 725 MW of de-rated capacity, 10% more than the previous record set in 2024/25
• Europe’s largest operational battery exited the auction, but other larger batteries yet to come online secured contracts

CCGTs Sutton Bridge and Severn Power Station impacted Capacity Market clearing prices - again

In the second round of the T-1 Capacity Market 2025/26 auction, a 380 MW Severn Power CCGT unit exited the auction. By the time the auction reached round 7 (£40/kW/year), over 1 GW more volume had exited the auction compared to last year. , the second Severn Power CCGT unit and the 780 MW Sutton Bridge CCGT remained in the auction. This meant the auction price continued to fall, before clearing in round 11 and £20k/MW/year.