How LCP advised RWE on the impact of the auctions on their generation portfolio and on wider market variables
Background
LCP has supported RWE to provide support in analysing the potential impacts of the Capacity Market and in its participation in the Capacity Market auctions.
Our solution
The initial engagement took place ahead of the first Capacity Market auction in 2014, and involved:
- Analysis of the wider system impacts including the impact on wholesale prices, the revenues for different types of plant and the impact on consumer bills was conducted to support RWE’s response to the design proposals
- Creation of Capacity Market auction model, to provide forecasts of clearing capacity and prices under a range of market scenarios.
The results
The bespoke tool provided gave results consistent with RWE’s internal wholesale market modelling and has been used on an ongoing basis to support their annual bid process.
We have provided ongoing support to RWE in developing these tools as the market design has developed.
