Capacity markets were designed to offer companies like yours the necessary financial incentives to enable grid operators to have adequate reserve during those infrequent times when electricity supply is low.

Generally, wholesale markets experience both real-time and day-ahead energy auctions. Distinctively, these two also have capacity auctions which are managed by independent system operators (ISOs) or the regional transmission organizations (RTOs).

The bottom line–You provide energy insurance to safeguard the Grid. Even though grid operators won’t need your energy, they’re satisfied to know they can have it in case of an emergency.