CARMEL, Ind. – The results of MISO’s fifth annual Planning Resource Auction demonstrate continued resource adequacy for the year ahead. Results released April 13 include almost 135,000 megawatts of planning resources to meet forecast demand and necessary reserves for the 2017-2018 planning year.
“The 2017-18 auction results reflect a net regional increase in supply compared to last year’s results,” said Richard Doying, executive vice president of Operations. “Even as the generation fleet continues to evolve, the level of available resources positions the region well for reliable operations in the coming year.”
Clearing price reflects supply adequacy, grid efficiency
All local resource zones in the MISO footprint cleared at $1.50/MW per day, reflecting an adequate availability of resources for the upcoming planning year and the grid’s capability to effectively transfer resources among zones. The single price across the MISO footprint differs from last year’s results, when retirements and capacity exports contributed to higher clearing prices in several zones.
Compared to 2016-17, this year’s results are largely reflective of new supply and lower load forecasts in the north and central MISO regions.
Doying noted that cleared offers include increased demand resources and energy efficiency over the 2016-17 planning year, as well as increases in renewable resources of both wind and solar.
Focus on long-term resources remains
MISO will continue to focus on the importance of securing long-term resource adequacy as the industry and generating fleet continues to evolve.
“Industry forces continue to indicate significant shifts in the fleet,” Doying said. “MISO will continue to address seasonal and locational issues with our stakeholders while ensuring that market signals provide incentives for investment where and when they are needed.”
MISO continues to support state processes around resource adequacy planning. In Illinois, MISO is formulating approaches to work with policymakers on developing a state-based approach to fully address long-term resource adequacy requirements.
About the Planning Resource Auction and MISO’s Resource Adequacy Construct
MISO’s resource adequacy mechanism is used to demonstrate that resources are available to reliably operate the electric grid over the next planning year. Load-serving entities can demonstrate sufficient capacity with owned resources, contracted resources or through participation in MISO’s voluntary Planning Resource Auction. The auction provides an additional mechanism for load-serving entities to secure sufficient resources in the right places to maintain reliability across the MISO region.
The auction results were reviewed and certified by MISO’s Independent Market Monitor. This includes reviews of all offers to ensure that any attempts to exercise market power are appropriately mitigated and market outcomes are competitive.
See detailed auction results on MISO’s Resource Adequacy webpage. For more general insights on the auction process, check out the MISO Matters blog.