ISO-New England’s forward capacity auction for power delivery in 2018-2019 failed to procure enough power to meet demand, according to Energy Choice Matters. The auction resulted in a system-wide clearing price of $9.55 per kW-month, with a price of $7.97 in an additional round for New York imports and $3.94 in two additional rounds for New Brunswick imports. The total cost of the New England capacity market will be about $4 billion, a marked increase from $3 billion for 2018-2018.
The auction triggered a rule that will provide new resources with the starting price of $17.73 per kW-month and existing resources with $11.08 per kW-month. The Southeast-Massachusetts/Rhode Island zone has a 238 MW shortfall (3.1 percent of required capacity), but the ISO believes that “reconfiguration auctions” held before 2018-2019 will fill those shortfalls.
More information on ISO-New England forward capacity auctions can be found here.
