ISO, a bulk power system and wholesale electricity market operator, has completed New England's first forward capacity market (FCM) auction, securing a blend of new and existing generation and demand-side resources to supply the 32,305 MW that the six-state region will need in 2010 and 2011.
‘s competitive wholesale markets are entering a new era,’ says Gordon van Welie, president and CEO of ISO . ‘We are pleased with the participation and smooth execution of this first auction. This launch creates the market stability needed to encourage the long-term development of New England's bulk electric power system in the most efficient manner possible.’
Approximately 39,155 MW of resources from new and existing demand- and supply-side resources competed in the auction's eight rounds, which ran from Feb. 4 to Feb. 6. According to ISO, the auction is designed to attract new power system investment and maintain existing power resources, as well as eliminate the need for widespread reliability agreements.
ISOsays that 15,800 MW of new resources have expressed interest in participating in the second FCM auction, scheduled for December 2008. This includes more than 14,000 MW of supply-side resources from traditional generation resources, including renewables and imports, and more than 1,800 MW of demand-side resources.