ISO New England Capacity Price To Decrease In 2021-2022
The ISO New England 12th Forward Capacity Market (FCM) auction (FCA #12) closed at a preliminary clearing price of $4.63 per kilowatt-month (kW-month) for the three capacity zones for the 2021-2022 deliver year, compared to $5.30/kW-month in last year’s auction for the 2020-2021 delivery year.
The 2021-2022 auction closed for most resources at $4.63/kW-month after four rounds of competitive bidding. This clearing price will be paid to all resources in all three capacity zones in New England (Northern New England; Southeast New England; and Rest of Pool) and 524 MW of imports from New York and 57 MW from one interconnection with Québec.
Imports over two other interconnections from neighboring regions, Québec and New Brunswick, continued into a fifth round, which closed at $3.70/kW-month for 442 MW from Québec and $3.16/kW-month for 194 MW from New Brunswick.
At $4.63/kW-month, the total value of the capacity market in 2021-2022 will be approximately $2.07 billion (preliminary estimate).