2019 Insights: Just in Time Capacity Acquisition through an Always on Capacity Exchange (AOCE)
- Jan 16, 2019 10:15 pm GMTJan 16, 2019 10:18 pm GMT
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This item is part of the Predictions & Trends - Special Issue - 01/2019, click here for more
Wholesale Capacity Markets saw a buildup of generating resources to meet forecasted peak demands that never materialized and have been declining for the past few years. Capacity market requirements are now following the downward trend seen in peak demand, by reducing the amount of capacity being acquired each year. This results in a significant amount of excess existing capacity, that was acquired in just the past few years, sitting idle, costing electricity consumers as much as $1 Billion dollars over a two year period in capacity payments. This paper is intended to stimulate discussions for the development of an industry standard "just in time" capacity exchange that reduces consumer cost, makes capacity acquisition more efficient and puts these existing resources to work supplying capacity where and when it's needed. A distributed ledger/blockchain solution may be appropriate for this purpose.