Forward Capacity Auctions (FCAs) are held annually approximately three years before the capacity resources must provide service. That delivery period is called the capacity commitment period (CCP). Capacity resources compete in the annual FCA to obtain a commitment to supply capacity in three years. This commitment is called a capacity supply obligation (CSO). Suppliers with the lowest-priced offers clear the auction and receive capacity payments based on the auction clearing price. These payments are in addition to what resources receive in the energy and reserve markets. In exchange for capacity payments, the resources have an obligation to be ready to run when called on.

Source: https://www.iso-ne.com/markets-operations/markets/forward-capacity-market/fcm-participation-guide/about-the-fcm-and-its-auctions

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ISO-NE Forward Capacity Auction Forecast Track Record

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Generation owners and their investors are placing big bets (often in the hundreds of millions of dollars) in the ISO-New England Capacity Market.  As Mark Christie, FERC Commissioner, put it in March 2023: “Capacity Markets are characterized by such hopeless complexity and impenetrable opacity that they represent the example of a game that only insiders can play and win.” ESAI is now offering the opportunity to request our Pre-Auction Capacity Price Forecasts for ISO New England’s Forward Capacity Auction (FCA) over the past 7 Capacity Auctions.

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ISO-NE FCA17 Auction Dynamics and Capacity Price Forecast | Capacity Watch Blog

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In ESAI’s latest Capacity Watch report, we analyze the ISO-NE FCA17, Forward Capacity Auction. ESAI’s coverage includes auction parameters, qualified capacity, and expected auction dynamics. These are all detailed in our Capacity Watch report.

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