Battery energy storage system (BESS) and demand-side response assets both secure roughly 8% of capacity agreements, according to provisional results, but nuclear leads the pack in first UK capacity market auction of 2026. Results from larger T-4 auction expected later in the month, with generators and energy storage assets vying for multi-year contracts.


From ESS News

BESS secured 8% of awarded capacity for delivery in 2026-27 in the UK T-1 capacity market auction, according to provisional results from grid operator NESO.

The auction awarded 7.2 GW of capacity agreements at a clearing price of GBP 5 ($7) per kW, per year – the lowest level for a T-1 auction since 2020. Awarded capacity was spread across 195 units, including 51 capacity market units (CMU) with “storage – battery” listed as the primary fuel type.

First held in 2014, UK capacity market auctions are split between a T-1 “top-up” auction and the longer-term T-4 auction, which awards multi-year capacity agreements four years ahead of delivery.

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