This group brings together the best thinkers on energy and climate. Join us for smart, insightful posts and conversations about where the energy industry is and where it is going.

Richard Brooks's picture
Co-Founder and Lead Software Engineer, Reliable Energy Analytics LLC

Dick Brooks is the inventor of patent 11,374,961: METHODS FOR VERIFICATION OF SOFTWARE OBJECT AUTHENTICITY AND INTEGRITY and the Software Assurance Guardian™ (SAG ™) Point Man™ (SAG-PM™) software...

  • Member since 2018
  • 1,540 items added with 672,248 views
  • Oct 31, 2020

This article from APPA provides a sobering and realistic view of the current situation with wholesale capacity markets. The current market designs are "misaligned", they do not accommodate State policies and Generators are not being adequately compensated, largely due to an over abundance of generating capacity, which is growing rapidly with DER adoption. Energy prices continue to slide backwards, further reducing a Generators revenue stream to the point where they are no longer earning enough revenues to maintain the high levels or readiness and resiliency needed to ensure reliable electricity. The momentous changes taking place in the energy transition will force the industry to look inward for some "soul searching". But remember, this train is moving fast and some will certainly be left behind. Soul searching is ok, but don't fall into analysis paralysis. 

"Utility projects (bilateral contracts and ownership) accounted for approximately half of the new capacity in each year and were characterized by a greater diversity of resources than merchant generation. In 2018, about half of the utility-sponsored new capacity was natural gas, one-fourth was solar, and one-fifth was wind; and in 2019, those three technologies each accounted for about one-third of utility capacity additions. Small amounts of hydropower, geothermal, biomass or biogas, and fuel cells were among the utility projects, but not the merchant projects."


Bob Meinetz's picture
Bob Meinetz on Nov 1, 2020

As would be expected from the website Utility Dive, which has reliably predicted the end of utility electricity and been reliably wrong - another attempt to blame the inability of wind and solar to provide reliable electricity capacity on FERC, whose responsibility it is to maintain interstate grid reliability.

Developers of renewable energy can't create their own 100% renewable grid, of course, because it would be a mess. So they whine, they blame, they stamp their little feet, claiming they should not only be allowed access to a grid with reliable sources, but paid more for their unreliable product. Fortunately, FERC is no longer listening. Maybe it's time for them to take their ball and go home?

Matt Chester's picture
Matt Chester on Nov 2, 2020

Well in science when evidence arises that our theories/models aren't valid, it's back to the drawing board rather than trying to shove the square peg in a round hole. But when it comes to the scientific process, you're less likely to have powerful lobbies and stakeholders trying to push a narrative and an end result. 

Richard Brooks's picture
Thank Richard for the Post!
Energy Central contributors share their experience and insights for the benefit of other Members (like you). Please show them your appreciation by leaving a comment, 'liking' this post, or following this Member.
More posts from this member

Get Published - Build a Following

The Energy Central Power Industry Network is based on one core idea - power industry professionals helping each other and advancing the industry by sharing and learning from each other.

If you have an experience or insight to share or have learned something from a conference or seminar, your peers and colleagues on Energy Central want to hear about it. It's also easy to share a link to an article you've liked or an industry resource that you think would be helpful.

                 Learn more about posting on Energy Central »