IESO Market Renewal: More than a Catch Phrase
By: Workbench Energy
January 18, 2021
The words Market Renewal have been floating around the Ontario energy space for a few years, but what does it mean for Ontario businesses?
Ontario’s electricity system operator, the IESO, has been working with stakeholders in the sector to update the design of the wholesale electricity market. The new market structure will be designed to bring improvements in both price signals and resource scheduling, ultimately increasing efficiency and reducing overall electricity system costs.
The new market structure will bring significant changes to those organizations who buy or sell their power directly with the IESO. Suppliers of electricity will be paid based on locational prices, limiting the out-of-market payments that occur today and improving price signals. A full day-ahead market with financially binding schedules replaces the current day-ahead reliability commitments, allowing market participants improved operating certainty. Enhanced scheduling of supply resources will ensure IESO optimizes the fleet across a full calendar day, ensuring the right resources are on at the right time. The new market design should make decision-making easier for Ontario’s electricity suppliers and consumers.
These changes require a significant investment in time from IESO and from stakeholders as the design ideas are documented, reviewed, amended and translated from design documents into Market Rules and Manuals. Much of this work will be occurring in 2021, involving the IESO, its Technical Panel, and stakeholders throughout the sector.
Decisions made now will impact the sector for many years to come. Now is the time for stakeholders to ensure their voice is heard and understand how developments in 2021 will impact the market well into the future.