Topic:

Topic: Power Markets

Latest

[Episode #205] – Rebuilding the Grid from the Bottom-up

Aug 23 2023

A tsunami of distributed energy resources (DERs) is starting to arrive on the grid. Customers are adopting millions of EVs, rooftop solar systems, battery backup units, and other devices that can dynamically respond to grid conditions. But most utilities are not engaging with this wave proactively. Instead, they’re being reactive, slow, and even resistant to allowing these devices to connect to the grid or participate in transactions.

As we rebuild and transform the grid in the course of the energy transition, we really need to think about how to accommodate DERs. There are manifold reasons to build a decentralized grid from the bottom-up, instead of keeping the conventional, top-down, hub-and-spoke architecture based on the large centralized power plants that we have relied upon in the past. So how do we do it?

Lorenzo Kristov has been agitating for this new architecture for years, frequently issuing white papers and expert testimony to get regulators and others thinking about what the future grid should look like. And his ideas are being taken seriously, because he was a lead designer of the locational marginal pricing (LMP) market on which California’s wholesale power system operates. He has deep expertise in wholesale market design, DER participation in wholesale markets, coordination of transmission-distribution system operations, distribution system operator (DSO) models, distribution-level markets, microgrids, energy resilience strategies, and whole-system grid architecture, among other things. And he has been walking us through his vision for the decentralized grid in previous episodes of our show: #10, #94, and #150.

In today’s episode, Lorenzo rejoins us to build on our previous conversations and share his latest thinking about how to make the new energy transition grid architecture happen. We discuss market design, architecture, procurement, regulatory issues, and related topics, making this episode deserving of a Geek Rating of 10.

Geek rating: 10

(more…)

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

Oct 13 2021

Mini Episode

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

(more…)

[Episode #128] – Energy Basics Parts 7–9 – The Electricity Business and Power Markets

Aug 19 2020

Mini Episode

This episode is part of our Energy Basics mini-series. Parts 1-3 of the series can be found in Episode #119, and Parts 4-6 can be found in Episode #126.

If you have found yourself occasionally challenged to follow some of the more technical conversations we have here, or even if you just want to brush up on the fundamentals, this mini-series is for you! We hope these episodes will give you a bit more familiarity with the terms and concepts of energy, and help to fill in some of the knowledge that you were never offered in school.

Each of these three mini-episodes are about 20 minutes in length. Part 7 is available to all listeners. Parts 8 and 9 are available to full subscribers only. You can jump between each part using the chapter functionality in your podcast app.

Episode 128.1 - Energy Basics Part 7 – The Electricity Industry – The evolution of electric utilities; state regulation of utilities; utility restructuring. [00:00 to 30:19]

Episode 128.2 - Energy Basics Part 8 – Electric Utilities Today – The various kinds of electric utilities today; governance; relationship between transmission and distribution utilities. [30:20 to 59:06]

Episode 128.3 – Energy Basics Part 9 – Power Markets and Grid Balancing – How wholesale power markets work; introduction to retail electricity markets; how transmission and distribution grid operators keep supply and demand in balance. [59:07 to 1:26:34]

Geek rating: 1

(more…)

[Episode #126] – Energy Basics Parts 4–6 – Electricity, Generation and Grid Management

Jul 22 2020

Mini Episode

This is part of our mini-series on the Energy Basics. Parts 1-3 can be found in Episode #119.

Each of these three mini-episodes are about 20 minutes in length. Part 4 is available to all listeners. Parts 5 and 6 are available to full subscribers only. You can jump between each part using the chapter functionality in your podcast app.

Episode 126.1 - Energy Basics Part 4 – Basics of Electricity – What electricity is; electricity units; Volts and amps; AC and DC. [00:00 to 23:51]

Episode 126.2 - Energy Basics Part 5 – Electricity Generation – How various kinds of electricity generators and power stations work. [23:52 to 55:53]

Episode 126.3 – Energy Basics Part 6 – Grid Management – How the electricity transmission and distribution systems are structured and managed. [55:54 to 1:24:54]

Geek rating: 1

(more…)

[Episode #122] – Hybrid Power Plants

May 27 2020

Mini Episode

The days of worrying about the intermittency of solar and wind farms are quickly receding into the past as battery storage systems are added to existing plants, and new renewable plants are increasingly equipped with large battery storage systems from the outset as so-called “hybrid” power plants. In fact, 25% of all new solar PV plants waiting to connect to bulk power systems are now hybrid plants incorporating battery systems, and on the California wholesale power market, 96% of solar PV and 75% of wind projects launched in 2019 were paired with batteries. All at prices that beat the cost of conventional power plants.

But figuring out the best way to deploy utility-scale battery storage systems isn’t just a matter of dispatchability and system balancing. In fact, it turns out that tax credit incentives and market rules are far more significant determinants. That’s one finding of a new research paper led by several researchers at the Lawrence Berkeley National Laboratory, who modeled various ways of pairing battery storage systems with utility-scale wind and solar farms. In this episode, we explore the details of this modeling with one of the paper’s authors and speculate that it might actually be better to deploy large scale storage systems independently of wind and solar farms, if market rules were more supportive of the strategy.

Geek rating: 8

(more…)

[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

(more…)

[Episode #97] – How State Policies Can Drive Decarbonization

Jun 12 2019

Mini Episode

As we continue looking for ways to decarbonize our energy systems, we often have to decide whether it’s better to try reworking our market rules so that the markets will do a better job of procuring clean energy, as we discussed in Episode #90, or whether it makes sense to just mandate the procurement of clean energy resources. The former is a job for the Federal Energy Regulatory Commission (FERC), but the latter is the domain of the states. In fact, our guest in this episode, a senior attorney with NRDC and the Sustainable FERC Project, argues that because states are really the only ones with the authority to regulate energy in order to obtain a more environmentally beneficial outcome and combat climate change, their mandates are a necessary pathway to decarbonizing the grid. And that, to some extent, market price distortion is in the mind of the beholder.

Geek rating: 9

(more…)

[Episode #77] – Perspectives of an Energy Transition Veteran

Sep 5 2018

Mini Episode

Energy transition has been under way for the better part of two decades now, and it’s easy to forget how much the world has changed over the time. We now have a host of energy technologies and consumer tools that didn’t even exist 15 years ago. Utility business models have been turned upside-down and we’re still not sure what they’ll look like in the future. Equally, there has been a transformation in education as it tries to catch up with a rapidly-changing world and an ever-more-urgent call to action on climate change. Viewed up close, the transition now underway can look pretty slow sometimes, but if you back up and review what has transpired over the past 15 years, it has actually been incredibly rapid, at least compared to the historical pace of change.

Few people have been as involved in energy transition over the past 15 years, and have seen it as up close and personal as our guest in this episode. Robyn Beavers has had a remarkable career working in energy transition that included stints at Google, NRG, the Department of Energy, and Vestas, and she did it all starting as a young woman in an industry dominated by men. In this interview she shares some of her insights on how it all has unfolded, and how she has managed to be incredibly successful with navigating the gender disparity. She also explains how her new venture is working to turn the built environment into dynamic energy assets. If you’re a young person interested in breaking into the world of energy, you don’t want to miss this episode!

Geek rating: 7

(more…)