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capacity

A Better Value of Economic Dispatch

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Last week and many other times, I've written about soaring electricity loads and prices climbing even faster. The reality is prices are rising much quicker than load. For example, grid loads in Oregon have increased at a compounded rate of a modest 2%, while prices have risen by a compounded rate of nearly 9% in the same period. Why is that? Wholesale Electricity Supply Curve A year ago, I demonstrated using a typical generation supply stack from PJM, reposted in Figure 1. Each dot shown represents a generator. Refer to one of my concluding questions last week, "Will stakeholders increase,…
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Two Questions for Electric Utility Stakeholders

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Remember the theory that deregulation in the late 1990s would waive the need for energy efficiency programs? If not, you can read up on the Great Depression in Energy Efficiency, the origins of which began with the 1992 Energy Policy Act. I believe the theory at the time was that electricity prices would be so low that energy efficiency couldn't possibly compete. Or maybe the theory was, "We're deregulating; efficiency programs are a regulatory thing, so we no longer need them." I've written this blog for over 15 years, producing roughly 700 posts. I can't say that I've written a…
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Mini, Macro, and Mega Looks At the Modern Data Center Industry

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Every day, there is a headline about the explosion of data center growth and associated electric loads that will rapidly deplete reserve capacity on the electric grid. The Energy Rant featured several posts to describe the magnitude of the issue and concern among regulators, utilities, and government officials, most recently from the Mid-America Regulatory Conference and Syncing Power Generation with Soaring Loads. Since load management and reliable and affordable electricity are near and dear to me and because Michaels has been successfully engaging with developers of monster data centers, I pounced on the opportunity to attend the inaugural Data Center…
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Theory #2 For Batteries Increasing Emissions

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As a glutton for punishment (I look forward to getting past sciatica so I can run marathons again), I tasked myself with getting to the technical bottom of this article from Utility Dive: Energy storage for grid reliability can increase carbon emissions: University of Michigan study. The article doesn't get into the details, so I dived into the source document sponsored by the University of Michigan – a brutal read – like the last miles of a marathon, maybe Heartbreak Hill or Central Park. I spare readers the pain so they can follow along from their La-Z-Boys.  I know enough about wholesale electricity markets to use terminology and…
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Twelve Pack Lookback

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This post features my predictions from a year ago and what has happened since. Forecast #1: “The Ukraine war will not end peacefully with a desirable outcome as long as the bipartisan U.S. Congress keeps laundering money through the military-industrial complex (and others) in this proxy war with Russia.” The Wall Street Journal, December 15, 2023: “Nearly two years into the war, Putin’s gamble that Russia can outlast Kyiv’s Western backers appears to be paying off.” That was after Ukrainian President Zelensky visited Washington in December to urge Congress to send more weapons, to no avail. The average Ukrainian soldier…
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Load Flexibility vs Indeterminate Supply and Demand

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Two weeks ago, I roasted the federal government’s solution to 24/7 renewable energy: buy renewable energy locally. That can work to some degree for locating new-build data centers, which are significant loads on the grid. Most other sectors and subsectors need access to ports, rail, supply chains, and people – i.e., cities and military bases. For the most part, they are not geographically positioned with local access to significant renewable energy generation and, therefore, need electron superhighways known as transmission lines to receive bulk power sources hundreds of miles away and in different time zones in many cases. Pole and…
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Image of broken mirror with text that reads '24-7 carbon-free energy hall of mirrors'

24-7 Carbon-Free Energy Hall of Mirrors

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The ESG cabal seems to be drawing up another hall of mirrors to persuade credulous stakeholders and bystanders that they are siphoning only carbon-free energy (CFE) from the electric grid. The Electric Power Research Institute calls it 24-7 carbon-free energy, oddly enough. “Large companies from Starbucks to eBay have pledged 100% renewable energy targets to offset greenhouse gas emissions from their electricity use. Recently, several large companies, including Google, Microsoft, and others, have started procuring something called carbon-free energy that more closely matches their corporate electricity load on a 24/7 hourly basis. This is known as 24/7 carbon-free energy.” Unquestionably,…
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Image shows shape of Texas and text "Electricity Market Manipulation - Higher Costs, More Emergencies."

Electricity Market Manipulation – Higher Costs, More Emergencies

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East of the Mississippi, we haven’t had a heat-induced stress test of the electric grid for a long time. I don’t remember names, but I remember weather events, places, and numbers well. The hottest summer of my life was 1988, with many days over 100F throughout the summer (every month). Many records fell, and several times on consecutive days. It was relentless. The next steamiest summer was 1995, while I was in graduate school in Madison. The temperature peaked at around 117F with a staggering dewpoint over 80F. It's bad when sunglasses and bicycles fog over when you take them…
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Capacity Market Poker

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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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