Energy Efficiency in Capacity Auctions: A Historical Review of Value

Research Report U1714


Grace Relf and Brendon Baatz


Regional transmission organizations use capacity auctions to ensure energy resources are available to meet future demand. This report synthesizes and analyzes data on energy efficiency in two annual capacity auctions: PJM and ISO New England. Focusing on results since the inception of both auctions, we examine the value that including energy efficiency provides to customers and the system. We also explore load forecasting processes, effects on retail customer rates, and the systemwide price reduction effects of energy efficiency.