DDBT (Dynamic Delist Bid Threshold) Dynamic delist bids are capacity price bids submitted by market participants that specify the floor below which the generators do not want to assume a capacity supply obligation in the FCA for that auction period. The bids are typically reflective of the avoided cost of the resource and submitting them during the auction is the only way for generators to delist themselves. The bid is subjected to a threshold limit—called the dynamic delist bid threshold or DDBT—above which the ISO’s market monitor reviews them to mitigate any supply-side market power in the auction.
In ESAI’s latest Capacity Watch report, we analyze the ISO-New England Forward Capacity Auction, FCA16. Clearing Prices are expected to decline from the FCA15 Auction due to a decrease in Net Installed Capacity Requirements (Net ICR) and Net Cost of New Entry (Net CONE).
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ESAI Power is a market research and consulting firm that delivers focused analysis of the wholesale power markets in the Northeast region of the US: PJM, NYISO, and ISO-NE. Since 2001, ESAI has been providing market-focused research product content and custom consulting services for Northeast power market participants including investors (banks, private equity, & hedge funds) & developers, generation owners & operators, utilities & retail electricity suppliers, regulators & RTOs, traders, and end-users & buyers.