Capacity markets intend to bridge the gap between revenues available from energy markets and the all-in cost of desired capacity. They offer commitments, still short-term relative to most investment timescales, to make fixed payments for the right to call on an energy resource when needed.
As low-cost renewables provide a growing share of the electricity, grid operations—and thus power markets, financial structures, and policies—must evolve. This article draws lessons from power contracts and markets about the evolving role of renewables from two different organized markets.
Energy efficiency is a big business. However, some are beginning to question whether money could be spent more wisely to achieve greater levels of efficiency. Now is the time for policymakers to take a hard look at how to scale-up energy efficiency cost-effectively.
Ask a distribution grid engineer in Germany or Hawaii how work is going these days, and you’re in for an earful. And policymakers would be smart to listen—while discussions of voltage regulation or “transient stability” can sound overly technical, the truth is that voltage stability in the distribution network is essential to taking advantage of distributed energy resources.
Well-established power groups are drawing different conclusions regarding the feasibility of maintaining grid reliability as states act in order to abide by the EPA’s Clean Power Plan. What’s causing these reliability authorities to reach such different conclusions, and is more analysis needed?
In this month’s “Trending Topics” piece, the experts of America’s Power Plan discuss new opportunities for electric utilities to drive development of distributed energy resources and increase the availability of customer investment opportunities in distributed generation and efficiency.