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ISO-NE implements 'pay-for-performance' capacity market incentives
Utility Dive: The PFP model was introduced five years ago, but due to the forward nature of capacity markets it has taken some time to integrate. It is still not fully in place, say New England officials, and will be phased in during the next six years. But already, the grid operator indicated it has seen some improvements.
"As pay-for-performance is phased in over the next several years, the data will determine how well it achieves the reliability benefits we sought when the design was introduced five years ago," ISO chief economist Matthew White said in a blog post on the grid operator's site.
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