The Independent Electricity System Operator (IESO) in the Canadian province of Ontario has revealed plans to launch annual capacity auctions in a bid to reduce electricity costs for households.
The IESO claims that the auction plan — part of a broader series of market-related reforms it is introducing — will reduce household electricity costs by CAD 3.4 billion ($2.5 billion) over the next decade. It aims to hold the first auction in late 2022.
“These auctions will specify how much electricity we need, and introduce a competitive process to determine who can meet that need,” says Peter Gregg, president and CEO of the IESO. “It’s a competition among all eligible resources, and it’s the Ontario consumer who benefits through lower costs and a more flexible system better able to respond to changing demand and supply conditions.”
Comments