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EDF, Eon, Anglian Water and Southern Water were among the successful bidders in the transitional capacity auction for demand-side response (DSR) measures and small-scale generation held this week.
Other successful bidders included Tata Steel, Tempus Energy and demand-side repsonse aggreagor Flexitricity.
The auction closed after four days, securing 803MW electricity capacity at a clearing price of £27.50/kW, nearly 100 MW short of its 900MW target. The capacity secured will be delivered in winter 2016-2017.
The transitional auction is being held in addition to the main capacity auction, the second of which took place last December. It is to ensure demand-side capabilities are fully exploited ahead of 2018, when the traditional capacity now being sold into the main auctions comes on-stream. It is also open to small scale flexible generation.
The transitional arrangements have faced some criticism, with the founder of DSR aggregator Flexitricity, Dr Alastair Martin, recently warning companies not to take part, saying the transitional arrangements are a “trap” because participation in them excludes companies from the main auction.
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