In June 2020, the IESO's Capacity Auction will replace the existing Demand Response (DR) Auction to enable competition between additional resource types. Capacity auctions help meet Ontario’s reliability needs in a cost effective manner while allowing the IESO to transparently adjust to changing system needs.
For further details on the stakeholder engagement meetings and process that enabled the transition to a Capacity Auction, please refer to the Capacity Auction engagement page.
The first Capacity Auction is scheduled for June 24, 2020 with a number of specific tasks required to participate in the auction process outlined in the timeline document below.
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Capacity Auction Specific Information
- June 2020 Capacity Auction Timelines (for the commitment period beginning May 1, 2021)
- Auction workbook training guide: Introduction to Capacity Auction
- Pre-Auction Report: To be made available in Spring 2020
- Market Manual 12.0: Capacity Auctions
- Demand Response Contributor Management and Measurement Data Submission Timelines for June 2020 Capacity Auction
What do I need to do to participate in Capacity Auction?
Organizations must become authorized as Capacity Auction Participants (CAPs) to take part in the Capacity Auction. Applications must be submitted at least 40 days before the start of the auction. Once authorized, CAPs can participate in all subsequent auctions.
What happens before the Capacity Auction?
Approximately two months prior to the start of the offer submission window for the Capacity Auction, the IESO will publish the Pre-Auction Report.
The Pre-Auction Report includes the following information for each commitment period:
- Key Milestone Dates, including submission of capacity enrollment information, payment of auction deposit, and date of auction
- Target Capacity
- Maximum and Minimum Clearing Prices
- Capacity Limits
- Zonal Constraints
The Pre-Auction Report will be available on the IESO Public Reports site.
What happens during the Capacity Auction?
The IESO will process all submitted capacity auction offers, determine clearing prices and quantities. The results will be published in the Post-Auction Report which includes the following for each obligation period:
- Capacity Auction clearing price
- Amount of MW cleared for each electrical zone
- List of successful CAPs and their capacity obligations
- Enrolled auction capacity, by participant
The Post-Auction Report will be available on the IESO Public Reports site.
What happens post Capacity Auction?
Following the auction, the successful participants will be required to become authorized as Capacity Market Participants (CMPs), which will enable them to register resources to deliver on their Capacity Obligations. The participants will receive availability payments for providing auction capacity, subject to non-performance charges.
Demand Response Specific Information
Past Demand Response Auction information including Pre-Auction Reports, Post-Auction Reports and related documents can be found on the Demand Response Auction webpage.