Smart Grid
Energy Secretary Rick Perry’s upcoming grid reliability study is examining whether renewables are accelerating coal and nuclear retirements, while the trend is primarily driven by low natural gas prices and slow growth in electricity demand. Renewable energy growth is increasingly driven by costs, as these technologies have matured and attained scale.
FERC’s 2017 summer assessment forecasts tighter supplies in New England and Texas while anticipating adequate summer capacity in most regions. Increased hydroelectric generation from heavy snowpack levels is expected to mitigate risks from limitations at the Aliso Canyon natural gas storage facility in Southern California. Natural gas futures prices are expected to rise due to lower storage inventories, decrease in production rates, and above normal temperatures.
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FERC’s 2017 summer assessment forecasts tighter supplies in New England and Texas while anticipating adequate summer capacity in most regions. Increased hydroelectric generation from heavy snowpack levels is expected to mitigate risks from limitations at the Aliso Canyon natural gas storage facility in Southern California. Natural gas futures prices are expected to rise due to lower storage inventories, decrease in production rates, and above normal temperatures.
Legislation enacted across states in 2017 calls for greater diversity in power sources—from expanding renewables to supporting nuclear and natural gas infrastructure. However, there is a clear trend showing the intent to prioritize clean energy and climate policy. States in the forefront of grid modernization plans continue to support renewable development while others are following their models as a way to emulate effective policies.
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Legislation enacted across states in 2017 calls for greater diversity in power sources—from expanding renewables to supporting nuclear and natural gas infrastructure. However, there is a clear trend showing the intent to prioritize clean energy and climate policy. States in the forefront of grid modernization plans continue to support renewable development while others are following their models as a way to emulate effective policies.
PJM’s 2017 capacity auction – the first one to apply the 100-percent Capacity Performance requirement – yielded a clearing price of $76.53/megawatt-day in most of PJM, about 24 percent lower than last year. Cleared capacity of seasonal resources like demand response, solar, and wind fell largely due to the new year-round performance requirement. Lower prices are attributed largely to lower natural-gas prices, lower demand forecasts, and new combined-cycle natural gas units clearing capacity in the auction.
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PJM’s 2017 capacity auction – the first one to apply the 100-percent Capacity Performance requirement – yielded a clearing price of $76.53/megawatt-day in most of PJM, about 24 percent lower than last year. Cleared capacity of seasonal resources like demand response, solar, and wind fell largely due to the new year-round performance requirement. Lower prices are attributed largely to lower natural-gas prices, lower demand forecasts, and new combined-cycle natural gas units clearing capacity in the auction.
The Federal Energy Regulatory Commission (FERC) held a technical conference to determine whether state policies and objectives can be achieved through market mechanisms of the Eastern RTOs/ISOs. Discussions signal market reforms that will focus on solutions that harmonize and accommodate state policy requirements with wholesale markets. Reforms will likely address market mechanisms to value resource attributes and internalize carbon costs within wholesale electricity prices.
This content requires that you purchase additional access. The price is $99.00.
The Federal Energy Regulatory Commission (FERC) held a technical conference to determine whether state policies and objectives can be achieved through market mechanisms of the Eastern RTOs/ISOs. Discussions signal market reforms that will focus on solutions that harmonize and accommodate state policy requirements with wholesale markets. Reforms will likely address market mechanisms to value resource attributes and internalize carbon costs within wholesale electricity prices.
Recent court rulings on FERC Order No. 1000 uphold FERC authority over regional planning, placing federal regulators at the helm of modernizing the electric grid particularly in states operating in deregulated electric markets. The court decision vacating FERC’s ROE orders casts uncertainty for utilities that rely on FERC-approved rates for transmission services. The effectiveness of transmission planning processes will continue to be under scrutiny, as the U.S. power system undergoes transformational changes driven primarily by changes in the generation resource mix toward renewables and natural gas.
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Recent court rulings on FERC Order No. 1000 uphold FERC authority over regional planning, placing federal regulators at the helm of modernizing the electric grid particularly in states operating in deregulated electric markets. The court decision vacating FERC’s ROE orders casts uncertainty for utilities that rely on FERC-approved rates for transmission services. The effectiveness of transmission planning processes will continue to be under scrutiny, as the U.S. power system undergoes transformational changes driven primarily by changes in the generation resource mix toward renewables and natural gas.
The Public Utilities Commission of Ohio has announced a comprehensive review of technological and regulatory innovation to advance grid modernization. With continued growth in distributed energy resources and demand-side opportunities, the power industry faces the challenge of transitioning to a modern grid that addresses the demands of the evolving electric sector. Among other states where utility commissions have taken measures to address grid modernization, New York and California have garnered nationwide attention, setting the pace with significant progress towards necessary enhancements.
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