CASPR in New England – Market Minute (Video)

March 26, 2020



In New England, the second annual Competitive Auction for Sponsored Policy Resources (CASPR) took place in February 2020 for the power delivery year of 2023-24. 

CASPR was created to prevent subsidized resources covered by tax credits or state incentives from depressing prices in New England’s forward capacity auctions. 

CASPR was designed to allow retiring resources that had secured capacity supply obligations to transfer those obligations to new, subsidized resources that do NOT have an obligation.

The existing resource — from a retiring fossil fuel plant, for example — can then retire and receive a final payment equal to the difference between the (higher) forward capacity auction clearing price and the (lower) secondary auction clearing price.

According to ISO-NE’s published results of the February CASPR auction, zero MWs cleared the auction because there were NO retiring resources leaving the market. 

This is the second year in a row the number of renewable resources seeking to ENTER the market have outnumbered the retiring resources seeking to exit the market. 

ISO-New England, the region’s grid operator hasn’t committed to fundamentally changing CASPR in 2021, though there has been talk of altering auction as New England seeks to move away from a fuel mix dominated by fossil sources to one that features a greater mix of renewable sources.

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Published by

Jobin Arthungal

Jobin Arthungal

Mr. Arthungal is responsible for Market Development and manages the Demand Response programs in New England. Develop, qualify and manage commercial and industrial assets with Distributed Energy Resources (DER) in the ISO New England wholesale markets. Responsible for program liaison and regulatory support to ISO New England. Work with utility regulators to develop policies and guidelines to assist in the design of new energy programs. Providing program management support to sales and operations teams in New England markets. Mr. Arthungal brings approximately seven years of experience in the energy industry. He has been with CPower since November 2014, from his initial role as Energy Engineer to ISO New England (ISONE) Market Development Manager. Mr. Arthungal earned a Bachelor of Science (B.S.) in Electrical Engineering from Iowa State University and Master of Science (M.S.) in Energy Management from New York Institute of Technology.

Jobin Arthungal
Jobin Arthungal

Mr. Arthungal is responsible for Market Development and manages the Demand Response programs in New England. Develop, qualify and manage commercial and industrial assets with Distributed Energy Resources (DER) in the ISO New England wholesale markets. Responsible for program liaison and regulatory support to ISO New England. Work with utility regulators to develop policies and guidelines to assist in the design of new energy programs. Providing program management support to sales and operations teams in New England markets. Mr. Arthungal brings approximately seven years of experience in the energy industry. He has been with CPower since November 2014, from his initial role as Energy Engineer to ISO New England (ISONE) Market Development Manager. Mr. Arthungal earned a Bachelor of Science (B.S.) in Electrical Engineering from Iowa State University and Master of Science (M.S.) in Energy Management from New York Institute of Technology.