Getting Capacity Right: How Current Methods Overvalue Conventional Power Sources

Posted by Reports on Mar 30, 2022 6:18:56 PM

Publish Date: March 30, 2022

Getting Capacity Right

Acceleration of the clean energy transition is dramatically shifting the types of electric generation technologies used to meet electricity demand and reliably operate the grid. Rapid cost declines in advanced energy technologies like wind, solar, and energy storage are making them increasingly competitive choices for new generation additions. While there has been considerable attention devoted to determining the reliability value of these new resource types, the methods used to evaluate the resource adequacy, or capacity value, of conventional thermal generating resources (including coal, natural gas, and oil-fired power plants) have not been formally reexamined or updated in decades.

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Topics: Utility, Regulatory, Wholesale Markets

FERC Order No. 2222 Implementation: Preparing the Distribution System for DER Participation in Wholesale Markets

Posted by Reports on Jan 28, 2022 4:31:00 PM

Publish Date: January 20, 2022

FERC Order 2222 requires exceptional coordination between distribution utilities, RTOs/ISOs, aggregators, and state regulators. This report, from Advanced Energy Economy and GridLab, a non-profit mission-driven electric grid consultancy group, provides a framework for state regulators to navigate key issues as utilities look to improve integration of distributed energy resources (DERs) into wholesale markets in the coming years.

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Topics: Wholesale Markets

FERC Order No. 2222 and the Use Cases It Can Unlock

Posted by Reports on Jun 9, 2021 10:05:00 AM

Publish Date: June 9, 2021

This report outlines multiple use cases, each illustrating the benefits Order 2222 can unlock and how aggregated DER participation in wholesale markets can benefit everyone.

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Topics: Wholesale Markets

How to Optimize Energy Efficiency Benefits in Wholesale Markets

Posted by Reports on Apr 1, 2021 3:49:00 PM

Publish Date: April 1, 2021

Two new papers prepared for Advanced Energy Economy by The Brattle Group highlight the importance of energy efficiency participation as a supply-side resource in capacity markets generally, and offer recommendations to make best use of energy efficiency for resource adequacy in the MISO market specifically.

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Topics: Wholesale Markets

Principles for Reforming Capacity Markets to Meet State and Customer Clean Energy Goals

Posted by Reports on Mar 19, 2021 9:59:00 AM

Publish Date: March 19, 2021

The existing capacity market constructs in PJM, ISO-NE, and NYISO do not account for state commitments and customer preferences for renewable or no-carbon resources, or the declining costs of advanced energy technologies. Indeed, existing capacity market rules can prevent or hamper clean energy-producing resources from clearing in the capacity market and counting toward resource adequacy needs. The result is a problematic and increasingly costly trend of divorcing the procurement of capacity to address resource adequacy needs from the procurement of clean energy needed to meet state and consumer demands. As clean energy demands continue to grow, this status quo will not be sustainable.

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Topics: Wholesale Markets