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Capacity market — Energy Glossary | Pilot Energy

Written by Pilot Energy | May 20, 2026 10:01:50 PM

Capacity market

Category: Markets

A forward market where generators are paid to commit to being available during peak demand periods, regardless of whether they actually run. Ensures resource adequacy. Major capacity markets: PJM Capacity Performance, ISO-NE Forward Capacity Market, NYISO ICAP.