Michael Giberson From time to time a promoter of wind power will encourage the U.S. to follow Denmark’s lead and aim for a much higher levels of wind power on the grid. (Recently Denmark’s legislature established a goal of attaining 50 percent of its energy from wind power by 2020.) A working paper by Johannes …
Michael Giberson The Gulf Coast Power Association meetings earlier this week included a debate over the future of resource adequacy within the ERCOT power system. Debate moderator Eric Schubert, BP Energy Company, introduced the issue with a critique of capacity market structures that is heavy on its reliance on Hayek’s knowledge problem. It is a …
Rto Forward Capacity Markets Are Unlikely to Succeed Read More »
Michael Giberson Laylan Copelin, reporting for the Austin American-Statesman, documents the power system resource issues currently troubling state utility regulators in Texas: “State set to grapple again with question: How to encourage more private-sector power generation?” Texas suffered one rolling blackout last winter and narrowly avoided another this summer. The weather extremes might have exposed …
Michael Giberson Will electric power consumers facing smart-grid enabled real time prices have the potential to accidentally destabilize the power grid and cause a blackout? A paper presented at a recent IEEE conference says it is a possibility. The surprising culprit? Too much price elasticity in the market demand function. It is a surprising culprit …
Worried About Too Much Demand Elasticity in Electric Power Markets Read More »
Michael Giberson From the Harvard Electricity Policy Group meeting in February 2011. By convention the meetings are off-the-record, so the speaker’s name is not identified in the summary: I think the most important distinction between the fields of climate science and economics for me is the question of evidence. Science is characterized by a subtle …
Economics of Power Market Design Compared Unfavorably to Climate Science Read More »
Michael Giberson The Bonneville Power Administration (BPA) Administrator has adopted interim Environmental Redispatch and Negative Pricing Policies to deal with potential overgeneration conditions on the BPA power system. In brief, BPA plans to employ “Environmental Dispatch” rules for operating the power system in a manner conducive to BPA meeting various legal and regulatory constraints; the …
Bonneville Power Administration Says No to Negative Prices Again Read More »
Michael Giberson A handful of stories raising power market design issues: The Oregonian, “Northwest wind power to double but inconsistency creates nightmare“: “The value of BPA’s surplus power sales are already being undermined by wind energy sloshing into the market. That ultimately increases rates for its public utility customers, who are loathe to absorb any additional …
Michael Giberson The ERCOT independent market monitor (IMM) has released its report on the February 2, 2011 rolling blackouts. Excerpts from the report introduction are below, but let’s get to the meat of the matter. The IMM was asked (1) whether there was any evidence that market participants tried to manipulate the market for financial …
Independent Monitor Finds No Market Abuse During Ercot Rolling Blackouts on February 2 Read More »
Michael Giberson And if Andrew Kleit thinks that the Pennsylvania state government is toying with a bad idea (see previous post), look what is going on next door in New Jersey and Maryland. In New Jersey: “Utilities challenge New Jersey law while preparing to reap its benefits.” In January the Governor signed a law which …
Meanwhile, More “Power Market and the State” Battles in New Jersey and Maryland Read More »
Michael Giberson The new International Journal of Industrial Organization is a special issue devoted to experimental analysis. Among the articles is research into automated market power mitigation procedures similar to the rules employed in the New York Independent System Operator. In brief, the authors find that automated conduct- and impact-based screening of offers succeeded in …
An Experimental Test of Automated Market Power Mitigation Finds the Procedures Work Read More »
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