Capacity Market
Capacity Market
A Capacity Market is a market where grid operators procure firm generating capacity to ensure resource adequacy. Generators (conventional power plants or VPPs) bid capacity (measured in MW) into auctions, and if accepted, receive monthly payments in exchange for being available to dispatch during peak demand periods. Capacity markets are separate from energy markets (which pay for actual kWh delivered). Examples: CAISO's Resource Adequacy program, PJM's capacity auctions, ISO-NE's Forward Capacity Market. VPPs can participate by aggregating batteries, solar + storage, or demand-flexible loads. Capacity payments provide stable, predictable revenue for DER fleets.
How Molecule Systems Relates
VPPs that fail to perform during capacity market dispatch events face penalties and reduced capacity credits. Molecule's execution layer ensures battery fleets deliver committed capacity reliably, preventing the penalty exposure that undermines VPP economics. DividendVPP's value stack includes capacity market participation as a predictable revenue stream.
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Deployed alongside EG4 Electronics · Lightsmith Energy · Enersponse · RCT Power