Intermediate Length Contract Decision Paper
The SEM Committee is today, 02 May 2024, publishing a decision paper on Intermediate Length Contracts (ILCs).
Among the design decisions included in the paper are that a market participant may apply to the RAs to obtain an ILC of up to five years where they can demonstrate:
• That the unit will be investing more than €100,000/MWd (the Intermediate Contract Investment Rate Threshold (ICIRT)).
• That, post-investment, the unit will emit no more than 550gCO2/kWh.
Investors seeking to bid for an ILC in the 2028/29 T-4 auction must submit an ILC Exception Application by 4 June 2024. An ILC Exception Application template and guidance note is being published on the SEM Committee website, in parallel to this decision.
While changes to the Capacity Market Code will not be in place by the time Qualification and Exception Applications are due on 4 June 2024, the SEM Committee intends to bring forward a CMC modification proposal to implement the ILC decisions outlined in this paper as soon as possible.