SSE PLC

Capital/Financing Update • Feb 9, 2018

National Storage Mechanism | Additional information

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RNS Number : 3890E

SSE PLC

09 February 2018

SSE plc

Capacity Market Auction Provisional Results T-4 2021/2022

SSE plc has provisionally secured agreements to provide a total of 4,177MW (megawatts) of de-rated electricity generation capacity from October 2021 to September 2022 in the GB Capacity Market auction.

The auction cleared at a price of £8.40/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 comprises: 

·      806MW of hydro electric and pumped storage plant; and

·      3,371MW of gas-fired and embedded power generating plant

The total value secured by SSE is around £35.1 million. The revenue will be received on a pro-rated basis throughout the delivery year. To secure the revenue arising from the Capacity Market, providers of capacity must produce electricity or reduce demand when the system requires it in 2021/22; failure to do so will result in penalties being levied.

2,811MW of SSE's de-rated capacity which prequalified for the auction did not secure an agreement. This includes:

·     SSE's proposed new build CCGT, Keadby 2 (767MW de-rated capacity).

·     SSE's coal-fired power station Fiddler's Ferry (1,743MW de-rated capacity). The result has no immediate impact on the station as three of the four units at Fiddler's Ferry have capacity obligations in the 2017/18 and 2018/19 delivery years. In light of the latest auction results, SSE will consult with major stakeholders and make a final decision about the future of Fiddler's Ferry beyond the station's capacity contract commitments, which run to September 2019. 

SSE's Wholesale business priorities in 2017/18 and beyond continue to include a focus on maintaining and operating its generation portfolio efficiently and reliably while analysing market conditions and opportunities to create value.

ENDS

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