°Ç¸ç³Ô¹Ï

Skip to main content
Correspondence

Full details of auction parameters and interconnector de-rating factors

Published 21 July 2026

© Crown copyright 2026

This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. To view this licence, visit or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: psi@nationalarchives.gov.uk.

Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned.

This publication is available at /government/publications/capacity-market-auction-parameters-letter-from-desnz-to-neso-july-2026/full-details-of-auction-parameters-and-interconnector-de-rating-factors

Table 1: Auction parametersÌýÌý

T-1 Auction for delivery in 2027/28 T-4 Auction for delivery in 2030/31
Auction target capacity 5.0 GW 40.9 GW
Demand curve: minimum capacity at price cap 4.0 GW 39.4 GW
Demand curve: maximum capacity at £0 6.0 GW 42.4 GW
Reliability Standard (Loss of Load Expectation, LOLE) 3 hours LOLE 3 hours LOLE
Net Cost of New Entry (CONE) £49/kW/yr £49/kW/yr
Price Cap £75/kW/yr £75/kW/yr
Price Taker Threshold £25/kW/yr £25/kW/yr
15-year agreement threshold N/A[footnote 1] £360/kW[footnote 2]
9-year agreement threshold (for eligible Declared Low Carbon Capacity Market Units (CMUs) only) N/A[footnote 1] £215/kW[footnote 2]
3-year agreement threshold (for non-Three YearÌýZero Capex ThresholdÌýCMUs) N/A[footnote 1] £65/kW[footnote 2]
3-year agreement zero threshold (for eligibleÌýThree YearÌýZero Capex Threshold CMUs only) N/A[footnote 1] £0/kW
Indexation N/A 2025/26

Table 2: Interconnector de-rating factors

T-4 auctionÌýforÌýthe 2030/31ÌýDelivery Year T-4 auctionÌýforÌýthe 2030/31ÌýDelivery Year T-4 auctionÌýforÌýthe 2030/31ÌýDelivery Year T-4 auctionÌýforÌýthe 2030/31ÌýDelivery Year
InterconnectorÌý(interconnected country) Connection capacity[footnote 3](GW) NESO’s country de-rating factor range[footnote 4](%) PTE’s country de-rating factor[footnote 5](%) Technical adjustment[footnote 6](%) Interconnector de-rating factor (%)[footnote 7]
±õ¹ó´¡Ìý(¹ó°ù²¹²Ô³¦±ð) 2 45 – 90 71 78 55
±õ¹ó´¡2Ìý(¹ó°ù²¹²Ô³¦±ð) 1.1 45 – 90 71 81 57
·¡±ô±ð³¦³¢¾±²Ô°ìÌý(¹ó°ù²¹²Ô³¦±ð) 1 45 – 90 71 84 60
µþ°ù¾±³Ù±·±ð»åÌý(±·±ð³Ù³ó±ð°ù±ô²¹²Ô»å²õ) 1.2 22 – 93 71 81 57
²Ñ´Ç²â±ô±ðÌý(±·´Ç°ù³Ù³ó±ð°ù²ÔÌý±õ°ù±ð±ô²¹²Ô»å) 0.5 5 – 91 62 78 49
EWICÌý(Republic of Ireland) 0.5 5 – 91 62 97 60
GreenlinkÌý (Republic of Ireland) 0.5 5 – 91 62 99 61
±·±ð³¾´Ç³¢¾±²Ô°ìÌý(µþ±ð±ô²µ¾±³Ü³¾) 1 25 – 90 71 100 71
±·³§³¢Ìý(±·´Ç°ù·É²¹²â) 1.4 71 – 97 75 91 68
³Õ¾±°ì¾±²Ô²µ³¢¾±²Ô°ìÌý(¶Ù±ð²Ô³¾²¹°ù°ì) 1.5 17 – 92 71 94 67
Neuconnect (Germany) 1.4 19 – 93 71 93 66

  1. Multi-year agreements are not awarded in the T-1 auction.Ìý↩Ìý↩2Ìý↩3Ìý↩4

  2. The 3-year (for non-Three Year Zero Capex Threshold CMUs)Ìýand 15-year agreement thresholds are adjusted from the previous T-4 value (for the 2029/30 delivery year) for inflation, indexed to the 2025/26 inflation level, and rounded to the nearest £5. The 9-year agreement threshold (for eligible Declared Low Carbon CMUs only) is set as the midpoint between these thresholds, rounded to the nearest £5.Ìý↩Ìý↩2Ìý↩3

  3. Connection capacity taken from Capacity Market Register data for the 2029-30 T-4 Capacity Market Auction (accessed June 2026).Ìý↩

  4. Taken from NESO’s 2026 Electricity Capacity Report.Ìý↩

  5. Taken from the Panel of Technical Expert’s Report on the 2026 Electricity Capacity Report.Ìý↩

  6. Calculated as per the methodology described in the . Number displayed is rounded to the nearest integer.Ìý↩

  7. Calculated by multiplying the PTE’s interconnected country de-rating factor determination with each interconnector’s technical adjustment.Ìý↩

Back to top