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capacity market Archives - Michaels Energy

Years of Dominos Fall in Texas

By Energy Rant No Comments
Last week when the Rant “went to press,” which is to say, when I wrote it Saturday, the arctic blast was merely a cold shot of weather like I have experienced dozens of times. I didn’t start seeing the chaos in the south until Monday. It was an avoidable tragedy caused by many things over many years. Some places lost water supply and wastewater treatment. A colleague sent me the first picture below from a friend in the Dallas area. Here in the Midwest, we might think that’s an innovative way to keep beer cold at a house party. In...
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Texas Heat – An Energy Market

By Energy Rant No Comments
Texans may need Tabasco, not just for their favorite dish or condiment, but as a deterrent to chewing their fingernails as they ride the cliff of blackouts this summer. Numerous articles, including this most recent one I saw from the Fort Worth Star-Telegram, caution of rolling blackouts as capacity margins are less than 7.5%, which is about half the margin the Electric Reliability Council of Texas (ERCOT) would like to maintain. Supply and Demand I drew a cartoon showing supply and demand curves for differing scenarios below. Sales will increase slightly at lower prices. Electricity sales are very inelastic in...
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The $900 per Gallon Avoided Kilowatt Hour

By Energy Rant No Comments
Texas broke six daily electricity records in one week, ending July 20. Alectra, serving Southern Ontario, broke its peak electricity demand record on July 5. More than 80,000 customers in Southern California lost power due to excessive electric demand earlier this month. If that didn’t make your eyes pop, maybe this will: Alectra’s record surged by 8.3% to 5,056 MW. The Electric Reliability Council of Texas reported its record increased by 3% over the previous record to 73,259 MW. Restoration Power is Highest Still more interesting, when the circuits are at risk of overload and are shut down, as they...
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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. [vc_single_image image="13425" img_size="full" onclick="custom_link" img_link_target="_blank" link="http://www.eia.gov/electricity/policies/restructuring/restructure_elect.html"][vc_single_image image="13424" img_size="full" onclick="custom_link" img_link_target="_blank" link="http://sustainableferc.org/iso-rto-operating-regions/"] Utility Dive notes that Texas (Electricity Reliability...
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