Auction results confirm sufficient electric resources for New England during 2024–2025

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Auction results confirm sufficient electric resources for New England during 2024–2025

Sun, 02/28/2021 - 11:51am -- tim

Vermont Business Magazine Finalized results confirm that New England’s annual capacity auction concluded with sufficient secured resources to meet projected electricity needs three years in the future. ISO New England Inc. filed the results Friday with the Federal Energy Regulatory Commission (FERC). The filing also includes a list of electricity resources committed to ensuring reliable power for New England for the same period.

Capacity acquired and retained

The 15th Forward Capacity Market (FCM) auction (FCA 15), conducted on February 8, procured capacity for the June 1, 2024 to May 31, 2025 capacity year. In total, commitments for 34,621 megawatts (MW) were secured. This capacity is comprised of 29,243 MW of generation, 3,891 MW of demand resources, and 1,487 of imports from New York, Québec, Canada and New Brunswick, Canada. More than 2,525 MW of new resources within New England secured obligations. Of this total, approximately 19 MW received their obligations under the renewable technology resource (RTR) designation, which is the last year for this exemption. 

Prices

FCA 15 concluded with three different prices across four regional capacity zones: Northern New England (NNE), made up of Vermont, Maine and New Hampshire; Maine, which includes Maine alone and is nested within NNE; Southeast New England (SENE), comprising Northeastern Massachusetts, Greater Boston, Southeastern Massachusetts, and Rhode Island; and Rest of Pool (ROP), which includes Connecticut and western and central Massachusetts.

Capacity zones are developed to align with power system transmission constraints. They signal areas of the system with a potential shortfall or surplus of capacity. Multiple zones help to ensure that capacity is located and priced appropriately. The FCA 15 price was $2.48 per kilowatt-month (kW-month) in the NNE and Maine zones, $2.61 kW-month in the Rest-of-Pool zone, and $3.98 kW-month in the SENE zone.

The estimated value of the capacity market in 2024-2025 will be about $1.36 billion.

Forward Capacity Market (The FCM) is designed to procure the resources that will be needed to meet projected demand i n three years’ time. Capacity resources can include traditional power plants, renewable generation, imports, and demand-side resources such as load management and energy-efficiency measures. Resources clearing in the auction will receive a monthly payment during the delivery year in exchange for their commitment to provide power or curtail demand when called on by the ISO. The capacity market is separate from the energy market, where resources compete on a daily basis to provide power, and are paid for the electricity they produce.

Source: Holyoke, MA—February 26, 2021—ISONE http://www.iso-ne.com/