Resource Adequacy Framework
In Ontario, capacity auctions secure resources needed to meet peak demands, with a diverse range of supply options competing to be available for summer and/or winter peak energy needs. Having a flexible and competitive mechanism that can respond to changing system needs each year delivers significant value to ratepayers and ensures cost-effective reliability.
In an important milestone for Ontario’s electricity sector, the IESO secured 992.1 MW of capacity from a broad range of resources in last December’s province-wide capacity auction. Successful participants are providing capacity this summer, from May to September 2021, and include industrial and commercial consumers providing demand response, imports, generation and energy storage.
The experience with the most recent auction has reinforced the value of this mechanism in meeting short-term needs, and demonstrates why it will be relied on more in the years ahead as our system needs grow. As a result, the IESO will be enhancing the role of Capacity Auctions to help these needs and will be introducing minimum and maximum targets for summer and winter periods. More information about these capacity targets will be included in the Annual Acquisition Report.