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    Capacity market design – update

    The AESO would like to thank stakeholders who attended our April 25 session. We appreciated the questions we received about the desired end state, criteria and assumptions for capacity market design. These items are now final and will serve as working assumptions to guide the AESO and working groups during the design phase. The final version of these items can be found here.  

    We also appreciated the feedback we received from participants in roundtable discussions held at the April 25 session about considerations for developing a working group terms of reference to support capacity market design. We are currently developing a terms of reference document and plan to publish it on May 5. Stakeholders interested in serving on the working groups will be asked to complete a brief application indicating:

    • Their interest (i.e. how they are impacted), experience and expertise in the Alberta electricity industry, capacity markets (or both);
    • Their preferred design stream working group(s).

    The AESO is seeking balanced representation across our industry, substantive industry knowledge and significant commitment from the working group members selected. The application form will be posted on the AESO’s website on May 11. The application deadline will be May 24.   

    Finally, we also heard from stakeholders that a straw proposal for a capacity market design is a valuable way to get our design discussion started. To that end, the AESO is developing a straw proposal to create starting points for discussions within each design stream working group and to provide initial working assumptions of how elements outside of each design stream will be treated.   This straw proposal is not intended to represent an AESO recommendation or final design decision and it is expected that the starting points will be tested and potentially altered within the design stream working groups.

    The straw proposal elements will be mapped to the five design streams which will help stakeholders determine which working group(s) they would like to participate in. The AESO will publish its straw proposal on May 11. We will also host a session on May 17 where stakeholders can ask clarifying questions about our straw proposal. We look forward to stakeholders’ continuing participation. Important dates for capacity market design follow below.

    Capacity market design – Key dates

    May 5 Working group terms of reference posted
    May 11

    AESO straw proposal for capacity market design posted

    Application for working group membership posted

    May 17 Stakeholder session on AESO straw proposal for capacity market design
    May 24  Application deadline for capacity market working groups
    May 31 Working group membership finalized
    Week of June 5 Working group kick off meetings