ISO-NE forward capacity auction secures sufficient power system resources, at a lower price, for grid reliability in 2020-2021
The 2017 auction clearing price lowest since 2013
New England’s annual Forward Capacity Market auction concluded Monday, February 6, with sufficient resources to meet demand in 2020-2021. Preliminary results indicate the clearing price for all three capacity zones, $5.30 per kilowatt-month, is the lowest since 2013. The auction is run by ISO New England to procure the resources that will be needed to meet projected demand three years in the future.
The 11th Forward Capacity Auction (FCA #11) attracted robust competition among resources to provide reliability services in New England. This year’s auction concluded with commitments from 35,835 megawatts (MW) to be available in 2020-2021, with 1,760 MW of surplus capacity. The auction rules allow the region to acquire more or less than the capacity target, providing flexibility to acquire additional capacity and enhanced reliability at a cost-effective price. Read the February 9 press release for more details.