RWE Secures Record Capacity Agreements in UK’s T-4 Capacity Market Auction

By Editor


In the latest development in the UK energy market, the T-4 Capacity Market auction for the delivery year 2027/28 has concluded, with notable outcomes announced by the EMR Delivery Body, National Grid ESO. The auction has achieved a clearing price of £65 per kilowatt per year, securing a substantial 42,831 megawatts (MW) of capacity for the UK.

Among the key participants, RWE emerges as a significant player, securing agreements for all Capacity Market Units (CMUs) entered into the auction. This landmark achievement translates to RWE obtaining 6352.7 MW (derated) of capacity agreements for the 2027/28 delivery year.

Notably, RWE has also made strides in diversifying its energy portfolio, securing agreements for seven CMUs pertaining to its hydro sites and four CMUs for co-located battery plants. This integration of renewable energy capacity into security of supply mechanisms marks a pivotal moment for RWE.

Highlighting the significance of the UK Capacity Market, RWE emphasizes its role in providing stability to its generation business over the past decade. As one of the leading generators in the UK, RWE underscores its commitment to investing in green generation capacity, with ambitious plans to inject approximately 8 billion euros net into clean energy infrastructure in the UK between 2024 and 2030. This investment aligns with the broader energy transition goals of achieving net zero emissions and facilitating lower energy prices in the long term.

RWE’s prominence in the UK energy business is underscored by its position as the largest operator of Combined Cycle Gas Turbine (CCGT) power plants, boasting an installed capacity of around 7 gigawatts (GW). These assets play a crucial role in ensuring the country’s energy security.

However, RWE is not resting on its laurels and is actively driving an accelerated transition towards decarbonization. The company is advancing carbon capture and storage projects at four sites while exploring options for hydrogen combustion to reduce carbon emissions. With a target to convert the first of its fleet to decarbonized operation before 2030, RWE is at the forefront of shaping a sustainable energy future for the UK.

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