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AOCE under consideration as "Another Approach" for a NEPOOL Wholesale Capacity Market Pathway
I want to thank attorney Sebastian Lombardi of Day Pitney, representing NEPOOL, for his thoughtful insights and analysis of the Always on Capacity Exchange (AOCE) during a conversation on Friday, 11/20, in determining that AOCE should be included under the category of "Other Approaches" as a wholesale capacity market pathway for NEPOOL consideration in a forthcoming report on viable pathways forward. The AOCE concept was first introduced here on Energy Central as a 2019 insights article.
AOCE has evolved since its introduction on Energy Central in 2019 into a wholesale market concept that aims to harmonize State and Green buyer goals, such as REBA members, to acquire zero emission supply resources with the need to acquire essential grid services, per FERC Order 2222, within a wholesale market framework.AOCE is modeled on the Renewable Energy Buyers (REBA) and Level Ten Marketplace designs, which provide green buyers with the ability to secure long term capacity and energy supply. The AOCE strawman proposal was submitted to NAESB for consideration as a 2020 Annual Plan work item. A high level overview of the AOCE proposal is available here along with a strawman grid services hierarchy which is a critical part of the clearing process used in the acquisition of essential grid services needed for reliability purposes, per FERC Order 2222.
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