REG - SSE Plc - Capacity Market Auction Provisional Results <Origin Href="QuoteRef">SSE.L</Origin>

SSEAnnouncement

09/12/2016 08:00

RNS Number : 4250R
SSE PLC
09 December 2016
Capacity Market Auction Provisional Results
SSE plc has provisionally secured agreements to provide a total of 3,239MW (megawatts) of de-rated electricity generation capacity from October 2020 to September 2021 in the GB Capacity Market Auction.
The T-4 auction cleared at a price of 22.50/kW (kilowatt) with the provisional results published today and subject to confirmation by the Secretary of State for Business, Energy and Industrial Strategy.
The SSE capacity which has provisionally secured an agreement in the T-4 auction comprises:
 873MW of hydro electric and pumped storage plant;
 2,323MW of gas-fired and embedded power generating plant; and
 43MW of demand-side response
This means 3,794MW of SSE's de-rated capacity which prequalified for the auction did not secure an agreement. This includes its gas station at Peterhead and its coal station at Fiddlers Ferry.
To secure the revenue arising from the Capacity Market, providers of generating capacity must produce electricity when the system requires it in 2020/21; failure to do so will result in penalties being levied.
The total value secured by SSE is 72.9m. The revenue will be received on a pro-rated basis throughout the delivery year.
The results do not impact existing operations at any of SSE's operational stations, all of which will be available this winter.
SSE will continue to analyse market conditions and opportunities for 2017 and beyond, including the Early Capacity Auction in January 2017 for delivery in 2017/18 and business-as-usual operation in the market.
Ends

This information is provided by RNS
The company news service from the London Stock Exchange
  END
MSCTLBRTMBAMMRF