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What is the difference between FCEM and AOCE
- Feb 4, 2023 4:35 pm GMT
[UPDATE 2/22/203 AOCE is well positioned to support the acquisition of "equity PPA's"]
[UPDATE 2/15/2023: Wise advice coming from Denmark, this is what diplomacy looks like when applied to market reform discussions]
[UPDATE 2/9/2023 I concur with Frank Felder's methodical analysis of the current FCEM proposal and this conclusion]
Achieving substantial reductions in greenhouse gas emissions reliably and cost-effectively is necessary for the health and welfare of New England residents and creating the broad base of necessary political support. Pursuing a FCEM may be a distraction and counterproductive to achieving these more general policy goals.
On Friday, Feb 3, I attended a meeting hosted by the MA DOER to present the latest (rev 3) Forward Clean Energy Market (FCEM) design proposal. During the call, in the chat, I was asked “What’s the difference between AOCE and FCEM?” I hadn’t thought about this before but here is what I said:
“AOCE procures a capacity commitment and FCEM procures a certificate”.
IMO, there is a big difference between a capacity commitment and a certificate; a capacity commitment obligates a party to deliver real grid services needed for reliability and is tracked for progress.
FYI: The footnotes in the above document contain the detailed design concepts of AOCE.
AOCE offers and bids specify the specific grid services being transacted on an hourly basis over a given commitment period, usually based on seasonal periods. For example, a solar resource would offer capacity only during hours when they are capable of generating energy, for each hour specified in their offer. A bid for capacity from a Green Buyer, such as Microsoft, may specify hours of highest consumption.
The original AOCE concept paper was published on Energy Central in 2019, and is available here.
AOCE was modeled on the capacity exchange concept applied by Clean Energy Buyers, where momentum continues to accelerate.
Both FCEM and AOCE were submitted to NEPOOL and ISO New England for consideration as a Pathway Forward:
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