The Forward Capacity Market (FCM) 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
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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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.