The Independent Electricity System Operator initiative to collect input and advice on the design of a potential mechanism for a capacity auction has attracted a great deal of discussion and comment from stakeholders. Several meetings have been held in recent months and concerned parties including APPrO have submitted written comments.
The IESO’s stakeholder engagement plan for this project is designed to address, “early discussions with stakeholders to help better understand the challenges and opportunities that a capacity auction has experienced in other jurisdictions and the potential opportunities for Ontario. ... In anticipation of future system needs, such as nuclear retirements and refurbishment as well as the integration of large volumes of renewable generation and demand response the IESO’s attention has turned to exploring what flexible, responsive mechanisms could be introduced to complement the existing market structure. An auction, often referred to as a capacity market, is a cost effective approach that has been used in a number of markets in North America and globally to meet the planning and operational needs of modern electricity systems.”
The IESO notes that “(T)he objective of this stakeholder engagement is to seek input from stakeholders on identifying and developing the elements that should make up the design of a capacity auction for Ontario. This includes:
• Consulting on the various elements that should be considered in an overall design of an effective capacity auction;
• Identifying any gaps or barriers for participation;
• Discussing and identifying any opportunities to be leveraged through the design; and
• Collaborating on the details of each of the elements that make up the capacity auction design.”
For more information, please see the IESO website, or contact APPrO for a copy of its comments to date.