MISO 2026/27 Capacity Auction Clears at $126/MW-Day, Down 42%
- Capacity & Wholesale Markets News Policy & Markets
Marin Holt
- 0
- 5 minutes read
- North/Central region clearing price: $126/MW-day
- Price decrease percentage: 42%
- South sub-region clearing price: $116/MW-day
- LRZ 9 Louisiana clearing price: $123/MW-day
- New generation added: 5.6 GW
MISO’s April 28, 2026 Planning Resource Auction cleared the North/Central region at $126/MW-day, down 42% from the prior year’s $216/MW-day, according to a report by MISO. The auction, which sets the capacity price for the 2026/27 planning year, saw a significant decrease in prices due to an increase in offered capacity and new generation. The South sub-region cleared at $116/MW-day, while LRZ 9 Louisiana cleared at $123/MW-day. The results were reported by MISO on April 28, 2026, and analyzed by industry experts, including Modo Energy and SYSO Technologies.
The Data
The data from the auction shows that the North/Central region saw a 4% increase in offered capacity, with 5.6 GW of new generation added, dominated by solar, followed by gas and battery energy storage systems (BESS). This increase in capacity, combined with a 2.5 GW peak demand growth, resulted in a summer surplus of 2 GW, higher than the previous year. According to Enel North America, the new generation added to the grid is a significant factor in the decrease in capacity prices. The report by MISO provides a detailed breakdown of the auction results, including the clearing prices for each region.
Why It Matters
The decrease in capacity prices is significant, as it will impact the cost of electricity for consumers in the MISO region. The 42% decrease in the North/Central region’s clearing price will likely lead to lower electricity costs for consumers, as capacity costs are a significant component of electricity prices. According to Modo Energy, the decrease in capacity prices is a result of the increased competition in the market, driven by the addition of new generation. SYSO Technologies notes that the results of the auction will have implications for the development of new generation projects in the region.
Sources
Critical Perspective
While the decrease in capacity prices is a positive development for consumers, it also raises questions about the long-term sustainability of the grid. The addition of new generation, particularly solar and BESS, will require significant investment in transmission and distribution infrastructure. Enel North America notes that the integration of new generation sources will require careful planning and management to ensure the reliability of the grid. As the energy landscape continues to evolve, it is essential to consider the potential impacts on the grid and the role of capacity markets in ensuring reliability and affordability.
