GB CAPACITY MARKET AUCTION PROVISIONAL RESULTS

SSE plc

GB CAPACITY MARKET AUCTION PROVISIONAL RESULTS

Provisional results of the replacement year-ahead GB capacity market auction were published on the evening of 12 June and show that SSE's gas-fired power station at Peterhead has failed to secure a Conditional Capacity Market Agreement for the contract year October 2019 to September 2020.

This result will not impact existing operations at the Peterhead station, which will remain available this winter.  The station holds a Capacity Market Agreement for delivery year, from October 2021 to September 2022, for 1,062MW of de-rated capacity, which cleared at £8.40/kW.

SSE's gas-fired power station at Peterhead was the only SSE generation asset to participate in this auction.  SSE has already secured agreements for 3,150MW of its de-rated electricity generating capacity for the delivery year October 2019 to September 2020, through the 2015 Capacity Market auction which cleared at £18.00/kW.  The total value secured by SSE in the 2015 auction is approximately £57million.

To secure the revenue arising from the Capacity Market, subject to state aid approval, providers of generating capacity must produce electricity when the system requires it in 2019/20; failure to do so will result in penalties being levied.