Reserve Capacity Auction

Overview

If the Reserve Capacity Requirement is not met through bilaterally traded capacity, the IMO can run the Reserve Capacity Auction to procure Capacity Credits for on-sale to Market Customers. Note that the Reserve Capacity Auction is only held if there is insufficient capacity to meet forecast demand following the Bilateral Declaration process.

Market Participants can offer capacity in the Reserve Capacity Auction at prices between zero ($0/MW) and the Maximum Reserve Capacity Price. If the Reserve Capacity Auction is held in any one year, the clearing price for the Reserve Capacity Auction becomes the Reserve Capacity Price for all Capacity Credits traded through the IMO (except for facilities covered by a Special Price Arrangement granted in a previous year).

If a Reserve Capacity Auction is held and a proponent is assigned Capacity Credits through the Auction, it may take an option of a 10-year Special Price Arrangement.

The Reserve Capacity Auction is guided by the Market Procedure for: Declaration of Bilateral Trades and the Reserve Capacity Auction.

To date, there has been no requirement to procure capacity through a Reserve Capacity Auction. Please note that the notices of cancellation of the Reserve Capacity Auction for the 2011 and 2012 Reserve Capacity Cycles are published on the Capacity Credit Information page.

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Capacity Credits Procured through the Reserve Capacity Auction

Under Market Rule 10.5.1(f)(v) the IMO is required to publish the identity of each Market Participant from which the IMO procured Capacity Credits in the most recent Reserve Capacity Auction, and the total amount procured.

This information will be published here in the future if and when a Reserve Capacity Auction has been required.

Reserve Capacity Auction Offer Quantities and Prices

Under Market Rule 10.5.1(f)(vii) the IMO is required to publish details of Reserve Capacity offer quantities and prices, including details of the bidder and facility, for a Reserve Capacity Auction.

This information will be published here in the future if and when a Reserve Capacity Auction has been required.