New England’s Forward Capacity Auction closes with adequate power system resources for 2027/2028
April 10, 2024
New England’s annual capacity auction closed with sufficient power system resources to meet forecast peak demand in 2027/2028. Nearly all of the new resources securing capacity supply obligations were energy storage, solar, wind, or demand-reducing resources.
ISO New England Inc. runs the auction each year to procure the resources needed to meet consumer demand for electricity three years later. Held this year on February 5, the 18th Forward Capacity Auction (FCA 18) closed after four rounds of competitive bidding.
The auction secured capacity commitments of 31,556 megawatts (MW) to be available in the 2027/2028 commitment period, at a preliminary price of $3.58 per kilowatt-month (kW-month) in all zones and import interfaces.
Last year’s clearing prices ranged from $2.55 per kW-month to $2.59 per kW-month across different pricing locations.
Almost 1,085 MW of new renewable energy, energy storage, and demand-reducing resources secured obligations in FCA 18.
“The results of this year’s auction reflect a competitive process and help ensure a reliable power system for all of New England’s residents and businesses,” said Peter Brandien, vice president of System Operations and Market Administration at ISO New England. “A diverse mix of resources cleared the auction, including traditional generators as well as energy storage, solar, wind, and demand response, reflecting the region’s continuing clean energy transition.”
