Capacity Market 2026 Auction Report

Following the latest Capacity Market auctions, clearing prices have shifted dramatically, signalling a more competitive and rapidly evolving landscape for large business energy consumers.

Our Capacity Market 2026 Auction Report breaks down what’s driving these results and what they mean for your business, including:

• Falling clearing prices: Why the T-4 auction cleared at £27.10/kW and the T-1 at just £5/kW – both significantly below recent trends and forecasts.

• Rising competition: How growth in Demand Side Response and battery storage is increasing market liquidity and putting downward pressure on prices.

• Shifting market dynamics: What these results signal about the future of the Capacity Market, including the potential for further structural and regulatory change.

• Business opportunity: How your organisation can still unlock stable, government-backed revenue – and why early engagement is key to securing value.