Get A Case Study In Capacity Market Design And ... - AESO

Alberta's electricity market: deregulated since 1996 Alberta currently operates a wholesale power market that sets a price for electricity in each and every hour of the year, and this market is commonly referred to as a power pool.

Alberta is the third largest producer of electricity in Canada and has an estimated generating capacity of 16 330 megawatts (MW).

In the U.S., capacity markets are used by grid operators in New England, New York, and the PJM region that covers much of the Mid-Atlantic and Great Lakes states.

The wholesale electricity market in Alberta is currently an “energy-only” model, meaning that generators are only paid for the energy they produce.

Similar to how other capacity markets work, suppliers will compete to sell their capacity in the market through a series of competitive auctions run by the AESO. Competitive auctions will help drive prices down.

The capacity market will work efficiently and effectively with the energy and ancillary services markets and will be consistent with the lower-carbon electricity system of the future. The first capacity market auction is to commence in 2019 with first delivery of capacity to occur in 2021.