30 October 2023
CRM auction result (Y-4) for 2027-2028 published on elia.be/crm
System operator Elia has published the result of the third Capacity Remuneration Mechanism (CRM) auction.
This auction is designed to maintain security of supply over a four-year period (2027-2028 delivery year). The results show that 22 projects took part, with a total capacity of 1,576 MW. All projects have been contracted. The average annual price of this third auction was in line with that of the previous auctions at €36,372.88 per MW.
Key results from the third CRM auction
- The auction was conducted correctly. The regulator CREG has checked and validated the results.
- All offered capacity was retained (1,576 MW after derating) in this third Y-4 auction. This comprised 972 MW of existing (primarily thermal) capacity, with demand management accounting for approximately 50 MW, 357 MW of new battery projects and 246 MW of the temporary expansion of the service life of an existing gas-fired power plant in OCGT mode.
- As the volume offered for 2027-2028 was lower than the demand curve, the remaining 143 MW will be added to later auctions for this delivery year.
- At the Minister's request, calculations of the volume to be auctioned (demand curve) must take into account the extension of the service lives of Doel 4 and Tihange 3 (1,662 MW after derating) and the 1,657.77 MW of long-term contracts for battery projects and gas-fired power plants that had already been awarded two years previously in the first CRM auction (Y-4 for the 2025-2026 delivery year).
- The capacity offered was selected at an average annual price of €36,372.88 per MW. This is in line with the results of the previous auctions.
- Together with volumes from the previous auctions, 3,234 MW have now been contracted for the 2027-2028 delivery year (including approx. 2,000 MW of new capacity).
- With a view to guaranteeing security of supply in a rapidly changing context, the government intends to further optimise the CRM, for example by introducing an additional Y-2 auction. We are therefore on track in terms of security of supply for the 2027-2028 delivery year. Moreover, it is still vital that any remaining barriers to participation in the CRM be further addressed.