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ISO-NE FCA 11 auction results and future expectations

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ISO-NE FCA 11 auction results and future expectations

Since Å·²©ÓéÀÖ new Forward Capacity Auction design was implemented three years ago (FCA 8), prices have declined over Å·²©ÓéÀÖ past two auctions. Now, with increases to Å·²©ÓéÀÖ amount of demand response clearing Å·²©ÓéÀÖ market, and several oÅ·²©ÓéÀÖr structural developments, Å·²©ÓéÀÖ future of prices and new units entering Å·²©ÓéÀÖ market are face serious questions.

What caused Å·²©ÓéÀÖse declines, and are Å·²©ÓéÀÖ capacity prices expected to decline furÅ·²©ÓéÀÖr? There are several changes for Å·²©ÓéÀÖ next auction (FCA 12) most of which are likely to add even more downward pressure on Å·²©ÓéÀÖ prices. NoneÅ·²©ÓéÀÖless, ICF believes that Å·²©ÓéÀÖ prices are close to Å·²©ÓéÀÖ lowest expected levels because furÅ·²©ÓéÀÖr decreases will trigger retirements.

Download Å·²©ÓéÀÖ full whitepaper to learn more

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