Thank you for this well-written analysis of a complex subject. My two thoughts are: 1) the actual ISO market has atomized pricing of the subcomponents to meet demand, frequency, voltage, and more. Is this the best approach for capturing system dynamics of the integrated grid and power system? 2) I participated in a utility discussion where the utilities bashed batteries. I asked them if they heard of grid-forming batteries. Apparently they read something about them, but had no direct experience. Maybe regulators should encourage grid-forming battery connections.
Seriously informative and insightful! Thanks Lynne.
The question still in my mind though is that the “market”, especially Capacity Markets, have an underlying assumption that demand is wild (and unconstrained)* where that is no longer the case.
Technology (esp ICT) data, EIoT etc have dramatically changed what “demand” is (or could be ie it’s Demand Management not Demand Response).
* that’s not the right/best word
You also hit on a touchstone of my own thinking … what is the real VCR - Value of Consumer Reliability - it’s NOT single “number” it’s a “curve” and the x-axis is load type with four dimensions essential v nonessential AND inflexible v flexible (there’s some correlation respectively between those pairs but that can change temporally eg my EV must be changed to x% SoC by tomorrow, but I’m flexible how/when that’s done).
Really looking forward to reading the other parts in this series.
Btw these weaknesses in Capacity Markets are now major flaws … you will have seen my LI post questioning if the core problem we have is “hedging” (esp wrt supply side access to, and control of CER/DER) … this article only increases my conviction that it is!
Thank you for this well-written analysis of a complex subject. My two thoughts are: 1) the actual ISO market has atomized pricing of the subcomponents to meet demand, frequency, voltage, and more. Is this the best approach for capturing system dynamics of the integrated grid and power system? 2) I participated in a utility discussion where the utilities bashed batteries. I asked them if they heard of grid-forming batteries. Apparently they read something about them, but had no direct experience. Maybe regulators should encourage grid-forming battery connections.
The question is not what is on the list. It is who controls it, and whether anyone can ignore it.
Private networks, microgrids, and data-center campuses can. They can prove the list missed something.
Seriously informative and insightful! Thanks Lynne.
The question still in my mind though is that the “market”, especially Capacity Markets, have an underlying assumption that demand is wild (and unconstrained)* where that is no longer the case.
Technology (esp ICT) data, EIoT etc have dramatically changed what “demand” is (or could be ie it’s Demand Management not Demand Response).
* that’s not the right/best word
You also hit on a touchstone of my own thinking … what is the real VCR - Value of Consumer Reliability - it’s NOT single “number” it’s a “curve” and the x-axis is load type with four dimensions essential v nonessential AND inflexible v flexible (there’s some correlation respectively between those pairs but that can change temporally eg my EV must be changed to x% SoC by tomorrow, but I’m flexible how/when that’s done).
Really looking forward to reading the other parts in this series.
Btw these weaknesses in Capacity Markets are now major flaws … you will have seen my LI post questioning if the core problem we have is “hedging” (esp wrt supply side access to, and control of CER/DER) … this article only increases my conviction that it is!
Thanks again
Wow! So you are a techie too. Really impressive.