Market Renewal - Final Benefits Case posted
April 20, 2017
After extensive consultation with IESO stakeholders, the final benefits case for market renewal has been released. The final report and a redlined version which demonstrates the changes made from the first draft have both been posted to the Market Renewal Stakeholder Engagement page. This report includes analysis of the unique structure and characteristics of Ontario’s wholesale electricity market as well as experiences from other markets to provide a picture of the potential benefits and opportunities associated with the IESO’s Market Renewal program.
When fully implemented, the Market Renewal program will result in a more efficient, stable marketplace with competitive and transparent mechanisms that meet system and participant needs at the lowest cost. It will also help prepare Ontario for the future by creating a framework for effectively incorporating new and emerging technologies. The estimated benefits of the initiative significantly outweigh estimated implementation costs, with net benefits expected to reach $3.4 billion over the 10 year study horizon.
Completion of the benefits case will kick off the design phase of the Market Renewal program. Over the next 12 to 18 months, the IESO will work with stakeholders to develop high-level designs for the 5 foundational design changes included in Market Renewal. These include: a single schedule market, an incremental capacity auction, a day-ahead market, enhanced real-time unit commitment, and more frequent intertie scheduling.