The FCM (Forward Capacity Market) is the forward market for procuring capacity in ISO-New England. The FCM ensures that the New England power system will have sufficient resources to meet the future demand for electricity. Forward Capacity Auctions (FCAs) are held in ISO-New England. Resources compete in the auctions to obtain a commitment to supply capacity in exchange for a market prices capacity payment. These payments help support the development of new resources. Capacity payments also help retain existing resources and can serve as a stable revenue stream for resources that help meet peak demand but don’t run that often throughout the remainder of the year.

Source: https://www.iso-ne.com/markets-operations/markets/forward-capacity-market

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Stepping Stones to FCA16 and Beyond | Capacity Watch Blog

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In this blog, we highlight a portion of the analysis in the NYISO section of the recently published Q2 Capacity Watch™. Changes to the New York markets’ supply and demand levels and declining peak load forecasts have sent capacity prices in all directions. New York’s commitment to renewable development has increased considerably in the past year with the approval of CLCPA’s minimum statewide goal of 9 GW of offshore wind by 2035. The upward trajectory of renewables has also shaped LCR and IRM expectations.

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