The organization responsible for New England's wholesale electricity markets has announced the results of its twelfth annual forward capacity auction. According to grid operator ISO New England, Inc., its FCA 12 concluded with sufficient resources to meet electricity demand in 2021-2022, at the lowest price in five years.
As in some (but not all) other organized electricity markets, New England's electricity market design includes a wholesale energy market as well as a forward capacity market. Operated by ISO New England, the Forward Capacity Market or FCM is designed to secure capacity resources sufficient to meet future demand. The capacity market is separate from the energy market, and can provide additional revenues for qualified resources.
The grid operator conducts annual Forward Capacity Auctions or FCAs, held three
years in advance of each one-year operating period. Generation and other capacity resources such as load management or energy efficiency can compete in these auctions to obtain monthly market-priced capacity payments during the delivery year, in exchange for the obligation to supply capacity -- and supply energy or curtail demand when dispatched by the ISO in that future period. Capacity revenues can support the
development of new resources as well as the retention of existing plants by providing predictable cash flows and incentivizing consistent resource availability.
ISO New England held its twelfth FCA on February 5 and 6, 2018, auctioning off capacity supply obligations for the capacity commitment period of June 1, 2021 through May 31, 2022. On February 28, 2018, ISO New England submitted its forward capacity auction results filing for FCA12 to the Commission.
According to the filing, the descending clock auction commenced with a
starting price of $12.684/kW-month, with resources in most zones to be
paid at a clearing price of $4.631/kW-month based on the system sloped
demand curve. About 1,100 megawatts of imports over certain interfaces
with Canada will be paid at reduced capacity clearing prices. These prices are all below recent ISO-NE forward capacity auction results.
Through FCA12, ISO-NE procured 30,011 megawatts of generation, including 174 megawatts of new generation. The auction also acquired about 3,600 megawatts of energy efficiency and demand-reduction measures, 514 megawatts of which is new. The grid operator estimated the total cost of the capacity market in 2021-2022 to be approximately $2.07 billion.
ISO noted that it had rejected two "de-list bids", or requests by existing generators to leave the capacity market, for local reliability reasons. It identified those bids as coming from Exelon Generation Company, LLC with respect to its Mystic 7 and 8 units, totaling about 1,278 megawatts. As described in supporting testimony, ISO asserted that "allowing the resources to leave the market would have resulted in a violation of NERC, NPCC, or ISO criteria." According to a related press release, ISO found that "transmission lines in Greater Boston could be overloaded if Mystic 7 and Mystic 8 were not available during 2021-2022."
ISO described the results of the auction as just and reasonable, and asked the Commission to accept the filing.
Energy powers society; society's choices shape energy policy. A blog about our energy resources and the choices they present for society.
Showing posts with label FCA. Show all posts
Showing posts with label FCA. Show all posts
ISO-NE files IRC-related values for 2019-2020
Thursday, November 19, 2015
In advance of an upcoming auction to sell electric generating capacity into the New England market, regional grid operator ISO New England Inc. has submitted key information about its plans to the Federal Energy Regulatory Commission.
ISO New England is the private, non-profit entity that serves as the regional transmission organization for New England. In this role, ISO-NE plans and operates the New England bulk power system, administers New England’s organized wholesale electricity market, and has some responsibility over system reliability. Reliability can be stated in terms of a loss of load expectation or “LOLE”, which measures how often non-interruptible customers are disconnected.
New England has adopted a capacity market as part of its wholesale electricity market structure. One aspect of system reliability is ensuring sufficient generating capacity is available to meet consumer demand. Pursuant to Section III.13 of the Tariff, the ISO administers periodic Forward Capacity Auctions, or FCAs, in order “to procure the amount of capacity needed in the New England Control Area.”
ISO-NE will hold its tenth Forward Capacity Auction in February 2016, covering the 2019-2020 Capacity Commitment Period. To do so, ISO-NE must first identify how much generation will be needed to meet reliability standards in light of total forecasted load requirements for the New England Control Area and to maintain sufficient reserve capacity to meet reliability standards. One key value characterizing this need is the "Installed Capacity Requirement" or ICR. ICR refers to the amount of resources needed to meet the reliability requirements defined for the New England Control Area of disconnecting non-interruptible customers no more than once every ten years. Under Section 205 of the Federal Power Act, ISO-NE files with the FERC proposed ICR-Related Values for the each auction.
On November 10, 2015, ISO New England submitted to the FERC its Installed Capacity Requirement, Local Sourcing Requirement for the Southeastern New England Capacity Zone, Hydro Quebec Interconnection Capability Credits, and Demand Curve Values for the 2019-2020 Capacity Commitment Period. In that filing, ISO-NE proposed an Installed Capacity Requirement (net of certain credits for imports) of 34,151 MW.
ISO-NE noted that for the most part, this and other key values were calculated using the same Commission-approved methodology that has been used to calculate the values submitted and accepted for other recent Capacity Commitment Periods. One key difference for the tenth FCA is the inclusion of behind-the-meter photovoltaic (“PV”) resources that are not yet reflected in historical loads as a reduction in the load forecast. This change addresses a requirement imposed by the FERC in its January 2, 2015 Order accepting the Installed Capacity Requirement and related values for the ninth FCA.
ISO-NE asked FERC to accept the proposed ICR-Related Values for the tenth FCA to be effective on January 9, 2016 (i.e. 60 days after filing), to enable their use in the tenth FCA scheduled for February 2016.
ISO New England is the private, non-profit entity that serves as the regional transmission organization for New England. In this role, ISO-NE plans and operates the New England bulk power system, administers New England’s organized wholesale electricity market, and has some responsibility over system reliability. Reliability can be stated in terms of a loss of load expectation or “LOLE”, which measures how often non-interruptible customers are disconnected.
New England has adopted a capacity market as part of its wholesale electricity market structure. One aspect of system reliability is ensuring sufficient generating capacity is available to meet consumer demand. Pursuant to Section III.13 of the Tariff, the ISO administers periodic Forward Capacity Auctions, or FCAs, in order “to procure the amount of capacity needed in the New England Control Area.”
ISO-NE will hold its tenth Forward Capacity Auction in February 2016, covering the 2019-2020 Capacity Commitment Period. To do so, ISO-NE must first identify how much generation will be needed to meet reliability standards in light of total forecasted load requirements for the New England Control Area and to maintain sufficient reserve capacity to meet reliability standards. One key value characterizing this need is the "Installed Capacity Requirement" or ICR. ICR refers to the amount of resources needed to meet the reliability requirements defined for the New England Control Area of disconnecting non-interruptible customers no more than once every ten years. Under Section 205 of the Federal Power Act, ISO-NE files with the FERC proposed ICR-Related Values for the each auction.
On November 10, 2015, ISO New England submitted to the FERC its Installed Capacity Requirement, Local Sourcing Requirement for the Southeastern New England Capacity Zone, Hydro Quebec Interconnection Capability Credits, and Demand Curve Values for the 2019-2020 Capacity Commitment Period. In that filing, ISO-NE proposed an Installed Capacity Requirement (net of certain credits for imports) of 34,151 MW.
ISO-NE noted that for the most part, this and other key values were calculated using the same Commission-approved methodology that has been used to calculate the values submitted and accepted for other recent Capacity Commitment Periods. One key difference for the tenth FCA is the inclusion of behind-the-meter photovoltaic (“PV”) resources that are not yet reflected in historical loads as a reduction in the load forecast. This change addresses a requirement imposed by the FERC in its January 2, 2015 Order accepting the Installed Capacity Requirement and related values for the ninth FCA.
ISO-NE asked FERC to accept the proposed ICR-Related Values for the tenth FCA to be effective on January 9, 2016 (i.e. 60 days after filing), to enable their use in the tenth FCA scheduled for February 2016.
Subscribe to:
Posts (Atom)
