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

Organized Wholesale Markets and Corporate Advanced Energy Procurement

Posted by Reports on Jan 19, 2021 1:33:00 PM

Publish Date: January 19, 2021

A new report from the Advanced Energy Buyers Group, a business-led coalition of large energy users facilitated by AEE, explains why organized competitive wholesale markets operated by Regional Transmission Organizations and Independent System Operators (RTOs/ISOs) are foundational to many of the strategies that large energy buyers rely on to increase their use of advanced energy and meet their sustainability targets.

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Topics: Wholesale Markets, Advanced Energy Buyers Group

Opening the Door to DERs

Posted by Reports on Oct 1, 2020 11:50:00 AM

Publish Date: October 1, 2020

On September 17, 2020, FERC issued a landmark order directing Regional Transmission Organizations and Independent System Operators (RTOs/ISOs) to open their electricity markets to participation by aggregated distributed energy resources (DERs).

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Topics: Federal Policy, Wholesale Markets

NO QUICK FIX: Why ‘Fixed Resource Requirement’ is Not the Best Way for States to Protect their Energy Choices

Posted by Reports on Sep 2, 2020 3:18:00 PM

Publish Date: September 2, 2020

In Sept. 2020, AEE released this background paper describing the Fixed Resource Requirement (FRR) option in regional energy capacity markets that some states are exploring in response to an order by the Federal Energy Regulatory Commission (FERC) they see as undermining their policy commitments to clean energy.

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Topics: Federal Policy, Wholesale Markets

AEE Western Wholesale Market Principles

Posted by Reports on Feb 5, 2020 3:41:00 PM

Publish Date: February 5, 2020

Policymakers, utilities, and other stakeholders in the West are considering proposals to develop and expand broader regional wholesale market constructs. Electricity planning and resource procurement in the West is currently spread across 38 separate balancing authorities.

This is in contrast with several other regions of the country, where utilities and balancing authorities have joined together to rely on a single entity to ensure reliable operation of the grid, share resources over a broader geographic area, and use competition to drive efficient market operations.

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Topics: Wholesale Markets