Update on Capacity Auction Plans
January 24, 2020
The Ontario Energy Board (OEB) has issued a decision that allows the IESO to move forward with evolving its demand response auction into a broader capacity auction. Capacity auctions will increase competition in Ontario’s electricity markets, providing new opportunities for market participants while driving down costs for consumers.
With the necessary market rule amendments now approved, the first auction will be held in June 2020 and include participation from demand response providers, dispatchable generators with expired contracts, system-backed imports and storage resources.
The IESO recognizes the importance of being responsive to stakeholder needs and remains committed to ongoing engagement. A stakeholder engagement to help assess whether there is a net benefit to Ontario electricity ratepayers if DR resources are compensated with energy payments will continue, with draft research findings available for review later in Q1. A meeting has been scheduled for February 13 to begin investigating other non-energy payment related options with stakeholders.