- Dec 11, 2020 5:55 pm GMTDec 11, 2020 6:01 pm GMT
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Capacity Auction Results Demonstrate the Value of Competition
In an important milestone for Ontario’s electricity sector, the IESO has secured 992.1 megawatts (MW) of capacity from a broad range of eligible resources in its province-wide capacity auction. Capacity providers for the summer of 2021 will include industrial and commercial consumers providing demand response, imports, generation and energy storage. This diverse set of electricity assets will help the province manage peak summer loads.
Competition to provide capacity was very strong, with more than 1,700 MW of resources enrolled to participate in the auction. The final Ontario-wide clearing price for this year’s auction was $197.58/MW-day, a decrease of roughly 26 per cent from the last Demand Response Auction (summer Ontario-wide clearing price) in 2019.
From a system perspective, annual capacity auctions are an important tool to meet Ontario’s needs and provide the flexibility required to enable the province to adapt to changing conditions. Capacity auctions are the IESO’s primary mechanism for acquiring smaller amounts of capacity to meet needs emerging over the short and medium terms.
The Independent Electricity System Operator (IESO) for the Province of Ontario has conducted a wholesale market capacity auction for 2021 that integrates capacity offered by Commercial and Industrial Resources, similar to the Green Buyers participating in REBA and Level Ten market places. The success of the IESO in integrating these valuable resources into wholesale capacity markets should serve as a model for other wholesale markets in the US.
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