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Capacity Market Poker

By Energy Rant No Comments
About two weeks ago, New England got a punch in the mouth from old man winter. I tuned into the Mt. Washington Observatory (New Hampshire) to check the conditions. On Friday evening, February 3, it was cool and breezy at minus 46°F with 99 mph wind and freezing fog. I dig that. Today’s post continues last week’s discussion on wholesale electricity markets, including capacity and energy-only markets. Summary of that post: Wholesale markets are headed for trouble because Electricity cannot and will not be stored in bulk quantities Society cannot function without electricity Grid loads are getting spikier, and that…
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Wholesale Electricity Market Mechanisms

By Energy Rant No Comments
PSA I thought of making some wisecracks about the trial balloon that the Chinese Communist Party drifted over the United States. Whatever the intent, it’s no good. The thing that gave me a chill is that these balloons are a top ‘delivery platform’ for a nuclear EMP (electromagnetic pulse) attack. These balloons “can fly up to 200,000 feet, evade detection, and carry a small nuclear bomb that, if exploded in the atmosphere, would shut down the grid and wipe out electronics in a many-state-wide area.” I mentioned this last week and wrote an entire post on this threat five years…
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Wind Production Tax Credit

Capacity Market v Energy Market – What’s the Diff?

By Energy Rant 3 Comments
We are taking a break from exergy this week, and we are going to examine what is happening in distorted electricity markets around the country. This will be somewhat of a sequel to Regulating Deregulation and Wind's Other Big Subsidy. Too much of a good thing, or as they say, unintended consequences, is pushing the grid in some places toward instability. By the way, I scoff at the term “unintended consequences.” There are only two types of consequences: intended and ignorant ones.Utility Dive notes that Texas (Electricity Reliability Council of Texas – ERCOT) and the Southwest Power Pool are the…
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DC Circuit’s Smackdown of FERC re Demand Response

By Energy Efficiency, Energy Rant One Comment
I’ve written dozens of proposals, and I’ve read dozens and dozens of requests for proposals from all sorts of entities including states, local governments, private corporations, and of course, utilities.  With this comes scope of work requested, required proposal content, rules, terms and conditions, and due dates.  I always consider content of the RFP to mean what it says, and if it isn’t clear what it means, either ask a question via the process detailed in the RFP, or ignore it and work it out later, or it is a minor thing – irrelevant in the big picture. Enter the…
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