ISO-NE FCA – The Forward Capacity Market (FCM) ensures that the New England power system will have sufficient resources to meet the future demand for electricity. Forward Capacity Auctions (FCAs) were held annually, three years in advance of the operating period. Resources compete in the auctions to obtain a commitment to supply capacity in exchange for a market-priced capacity payment. These payments help support the development of new resources. Capacity payments also help retain existing resources. FCAs were held annually for 18 years, however ISO-NE is proposing Capacity Auction Reforms, and as of March, 2025, the next auction, FCA19 will be run in February, 2028. After FCA19, ISO-NE proposes to shift to a prompt and seasonal 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.