ISO Minute: Designing the capacity market of the future

ISO Minute is a video series featuring ISO New England employees speaking about their experiences working for the region’s independent system operator and supporting the safe and reliable transition to clean energy. 

As New England’s power system continues to change, the region’s capacity market is evolving with it. Designing, administering, and overseeing the region’s competitive wholesale electricity markets is one of three critical roles ISO New England performs in the region. 

The capacity market helps ensure the region has the power it needs over the long term by driving investment in energy resources and securing obligations to supply electricity or reduce demand. 

In this ISO Minute, Chris Geissler, director of Economic Analysis, explains how the ISO, working closely with stakeholders, has developed key changes to this market with the Capacity Auction Reforms (CAR) project.  

“This is a process that involves the ISO, and it’s also a process that involves working with stakeholders and collaborating with the region as we all work towards the capacity market of the future,” notes Geissler.  

While the current system procures capacity annually, CAR proposes moving to two commitment periods per year to better address the distinct reliability challenges of summer and winter.  

The Capacity Auction Reforms fact sheet provides more information on the proposal.