- Mar 14, 2021 7:34 pm GMT
Several regions across the country with wholesale electricity markets are working to address market deficiencies impacting resource adequacy requirements along with State Energy Goals and Green Buyer (Prosumer) initiatives. The linked analysis below describes the complete failure, pain and destruction that a poorly designed wholesale electricity market can bring upon a population. Many Texans suffered financially, physically, emotionally and some even died, as a result of a lack of empathy for fellow Texans and an unwavering commitment and confidence in voodoo economics known as "scarcity pricing", by Regulators. The linked article below is spot on with this observation:
" This is not the first time a power market has collapsed in the US. California’s power markets failed in 2001 for the same reason – a poorly designed market, created for traders by traders. Politicians and regulators in both Texas and California bought into the concept of deregulated and commoditized electricity, without understanding the supply risks to produce and deliver it. "
From everything I've observed in recent market reform discussions, the regulators continue to operate blindly without understanding the supply risks to produce and deliver electricity and that can't be good for a population that will have to endure the pain that these poor market designs will inflict, like the people of Texas experienced.
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