The auction held to secure additional capacity to ensure electricity supply throughout the country secured 46.354GW at a price of £18/kW.
Buying capacity four years ahead of the delivery year maximises the range of participants that can compete in the auction, thereby promoting competition.
Energy Minister Andrea Leadsom said: "Our number one priority is to ensure that hardworking families and businesses have access to secure, affordable energy supplies they can rely on.
"This result represents a good deal for customers – fierce competition in the Capacity Market has driven down costs, meaning future capacity has been secured the lowest price possible."
The auction witnessed participation from emerging as well as established players.
SSE has secured a provisional contract to supply a total of 3,150MW of electricity generation capacity from October 2019 to September 2020.
SSE Wholesale managing director Martin Pibworth said: "SSE has consistently argued that an effective Capacity Market is an important additional tool in helping National Grid and the Department of Energy and Climate Change in discharging their responsibility for security of electricity supply.
"The Capacity Market, now in its second year, is designed to keeps the lights on at the lowest cost to the customer whilst ensuring generators are fairly remunerated for the service they provide to help meet the peaks in customers’ requirement for electricity."
Additionally, Centrica, Drax and the National Grid won the bids.
Image: SSE, Centrica, Drax and the National Grid won the bids at UK’s Capacity Market auction. Photo: © Crown copyright
