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Topic: Capacity Markets

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[Episode #157] – Market Design for the Energy Transition

Oct 13 2021

This one is for the electricity market geeks!

Most observers of electricity markets are well aware that adapting them to the new kinds of technologies and policies needed for the energy transition is an ongoing project with no simple answers. Even if there were simple answers, it would be hard to implement them, because there are so many different market designs in operation already that will have to find ways to accommodate these reforms.

But perhaps by thinking about the specific attributes of electricity contracts, and how various kinds of contracts serve different purposes, we can begin to understand the ways they can help meet the needs of diverse market participants and properly represent the value of disparate resources. In this episode, energy researcher Eric Gimon returns to the show to share his conceptual framework for how electricity markets can function in the energy transition, and how those concepts can be applied to the markets we have today. We start by addressing the zombie theory of “value deflation” in solar, and end up in a very heady conceptual space well deserving of this episode’s geek rating of 10!

Geek rating: 10

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[Episode #105] – Can Competition Decarbonize Electricity?

Oct 2 2019

Mini Episode

In this third part of a trilogy of shows about how to decarbonize grid power, former utility regulator Travis Kavulla offers his thoughts on how wholesale electricity markets can use competition to deliver clean electricity. Following our discussion about reforming wholesale markets in Episode #90, and our exploration of how state policies can directly choose clean power in Episode #97, Travis offers some deep thoughts on the respective roles of FERC and state regulators, proposed reforms to PURPA, FERC’s showdown with PJM, the politicization of FERC, the recent battle in Ohio over HB6 (bailing out its nukes and coal plants), and other regulatory battles du jour. So much power market wonkery in such a small package!

Geek rating: 9

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[Episode #63] – Pathways to Deep Decarbonization

Feb 21 2018

Mini Episode

As energy transition proceeds we’ll need to move well beyond decarbonizing electricity generation and into transportation and space heating powered by renewables. But we’re only beginning to figure out the pathways by which we might do that, and since each region has its own particular sources of renewable energy and its own particular needs for energy, the solutions may vary quite a bit from place to place.

When do we figure out how to decarbonize space heating and transportation? What sorts of challenges will we face in adding those loads to the electricity grid? How much additional generation, transmission, distribution capacity, and storage will we need? How will we manage such a grid? And what if, once we have transferred some of those loads to the grid, it actually starts to look cheaper to not electrify everything? Our guest in this episode has studied such questions for years, and has some surprising insights into how deep decarbonization might actually evolve.

Geek rating: 3

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[Episode #60] – Demand Flexibility

Jan 10 2018

Mini Episode

Demand response and demand flexibility—shifting demand to intervals where electricity is abundant and cheap, and away from when the grid is constrained or power is expensive and dirty—can help keep prices down, optimize the grid overall, and help us integrate more renewable supply into grid power while displacing more fossil fuels. Until recently, this has mainly meant doing simple things like turning off loads during the on-peak intervals of time of use rates. But now new technologies are coming to the grid, including artificial intelligence, machine learning, and the so-called Internet of Things, which could let us moderate loads and operate grid assets in a much more intelligent, precise, and dynamic fashion, taking grid optimization to a new level and reducing the need for peaking resources.

But this is all quite new, and how we’re going to implement it, and what it may require, largely remains to be seen. In this episode we’ll talk with Sara Bell, founder of Tempus Energy, and get a little insight into how some early pilots of these technologies are working in the UK and South Australia. We’ll also get an inside view of her campaign to revise the design of the capacity market in the UK, so that it actually benefits consumers in accordance with the law, rather than distorting markets in favor of fossil fuel incumbents.

Geek rating: 8

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[Episode #39] – Transition in Australia

Mar 22 2017

Mini Episode

Australia has the highest proportion of households with rooftop solar PV systems of any country in the world. It also has the second-dirtiest grid in the world, getting three-quarters of its power from coal. As such, Australia might as well be the global poster child of energy transition, with both a huge load of dirty power plants it needs to retire, and a huge set of distributed and variable solar and wind systems that it needs to integrate into its power grid, while keeping everything balanced, without being able to import or export electricity from other nations. It’s a fascinating case study in wholesale markets, renewable incentives, technical balancing issues, and yes, acrimonious political debate between Browns and Greens. To help us understand this complex picture, we speak with Dr. Jenny Riesz, a Principal at the Australian Energy Market Operator (AEMO), the operator of Australia’s largest gas and electricity markets and power systems. Dr. Riesz works on adapting AEMO’s processes and functions to ensure ongoing security and reliability as the power system transitions to renewables, and leads its work program on matters such as frequency control, analysis on declining inertia, and possible solutions such as Fast Frequency Response.

Geek rating: 9

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