Market Renewal - Incremental Capacity Auction

The IESO is working with stakeholders to design and develop an Incremental Capacity Auction (ICA). The ICA initiative will develop an enduring market-based mechanism that will secure incremental capacity to help ensure Ontario’s reliability needs are met cost effectively. Developing an ICA is a key element of the IESO’s Market Renewal program. 

Background

The province currently meets its capacity needs through a combination of regulated and contracted resources. This approach has been instrumental in transitioning to a cleaner supply mix while ensuring reliability over the years. Looking ahead, we have an opportunity to draw on the experiences of other electricity markets to meet our reliability needs more cost effectively.

Capacity auctions have been implemented by many jurisdictions with much success. Capacity auctions can achieve efficiency benefits by creating a competitive market for suppliers, increasing the system’s ability to adjust to changing supply and demand dynamics, and attracting low-cost, non-traditional capacity resources that are unlikely to be identified in the absence of a competitive auction. For suppliers, capacity auctions provide enduring and transparent mechanisms to get paid for capacity they can supply. For consumers, capacity auctions ensure that capacity is secured at lowest cost.

Get Involved

As Market Renewal will address the fundamental design issues of Ontario’s electricity marketplace, this project will be of interest to market participants and other stakeholders.

Interested parties are invited to participate in, and provide feedback on, any of the Market Renewal initiatives.

For more information about how to become involved or to provide comments on the project, please contact engagement@ieso.ca.

Stakeholder Engagement Plan (Draft)

Schedule of Activities

Date
Agenda
Minutes

Activities

Expected Actions

Q2 2018

PHASE III –Design Decisions

 

Q1 2018

PHASE II –Design Options continues

 

December 4, 2017

Stakeholder Meeting

PHASE II - Options and Preliminary Decisions

 

November 10, 2017

Communication

 

November 6, 2017

Agenda

Stakeholder Meeting

PHASE II - Options and Preliminary Decisions

 

October 26, 2017

Stakeholder Feedback

 

September 28, 2017

Agenda

Minutes (Draft)

Stakeholder Meeting - Options

September 13, 2017

Stakeholder Feedback

IESO Response to Stakeholder Feedback

 

August 18, 2017

 

August 16, 2017

Agenda

Minutes

Stakeholder Meeting

July 20, 2017

Agenda

Minutes

Stakeholder Meeting – ICA Fundamentals and Concepts

Recorded Presentation

June 15, 2017
Agenda

Minutes

Stakeholder Meeting – ICA Fundamentals and Concepts

Recorded Presentation

May 18, 2017
Agenda

Minutes

Stakeholder Meeting – Intro to Engagement, Overview of Design Elements and Scope

Materials posted one week in advance of meeting

May 2017

Post Draft Stakeholder Engagement Plan

 

April 27, 2017

Launch Engagement and Communication