Competitive Auctions with Sponsored Policy Resources (CASPR) is a mechanism designed by ISO New England to integrate state-sponsored clean energy resources into its Forward Capacity Market (FCM). CASPR aims to balance the entry of new renewable energy projects with the retirement of existing resources, ensuring a reliable and cost-effective energy supply. The mechanism includes a substitution auction where state-sponsored resources can acquire capacity obligations from retiring resources. By facilitating this transition, CASPR supports state clean energy goals while maintaining market integrity and grid reliability. CASPR highlights the challenge of blending competitive electricity markets with evolving energy policies focused on decarbonization.
In ESAI’s latest Capacity Watch report, we analyze the ISO-New England Forward Capacity Auction, FCA16. Clearing Prices are expected to decline from the FCA15 Auction due to a decrease in Net Installed Capacity Requirements (Net ICR) and Net Cost of New Entry (Net CONE).
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ESAI Power is a market research and consulting firm that delivers focused analysis of the wholesale power markets in the Northeast region of the US: PJM, NYISO, and ISO-NE. Since 2001, ESAI has been providing market-focused research product content and custom consulting services for Northeast power market participants including investors (banks, private equity, & hedge funds) & developers, generation owners & operators, utilities & retail electricity suppliers, regulators & RTOs, traders, and end-users & buyers.