Demand Curve Model Based on System Reliability in ISO-NE Capacity Market

With the increasing proportion of renewable energy, low-cost wind power and solar energy lead to the continuous reduction of electricity spot market price. This makes it difficult to recover the fixed cost of traditional thermal power units, and the investment intention of units is also reduced. In order to ensure capacity adequacy and system reliability, different countries and regions have taken different measures. Aiming at the capacity market, this paper selects the representative ISO-NE capacity markets in US for analysis. The auction form, zonal division and demand curve in ISO-NE are analyzed in detail. Then the demand curve based on system reliability is modeled and analyzed, and the clearing model is built based on the actual operation data. The results show that the ISO-NE demand curve based on system reliability can flexibly reflect the actual demand of the system, so as not to cause excessive waste of capacity resources. Finally, the shortcomings of the existing research are put forward, which are supposed to be addressed in the future.