Full Title: Power Market Data and Analytics: Key Resources for Navigating the Clean Energy Transition
Author(s): Studio ID
Publisher(s): Yes Energy
Publication Date: October 1, 2022
Full Text: Download Resource
Clean energy has experienced explosive growth over the past decade. This rapid transition represents a crucial step in combating climate change — but it brings a host of new challenges to the electric power industry. The technologies being deployed as part of this transition — such as renewable energy and large-scale energy storage — are increasing the complexity of electric grid operations and changing power market dynamics. The grid was built for large, fossil-powered plants with constant, predictable energy outputs. As renewables proliferate, cases are emerging of unpredictable and weather-dependent wind and solar resources producing more power than the grid can export.
The dramatic shift in the generation mix towards intermittent renewables has created more uncertainty about whether the power supply will be sufficient to meet demand in certain hours. This shift has increased congestion — a condition where transmission lines lack the capacity to transmit excess energy — and, subsequently, price volatility. This is particularly true in power markets with high renewable penetration operated by the California Independent System Operator (California ISO), the Electric Reliability Council of Texas (ERCOT) and the Southwest Power Pool (SPP). Over the past five years, North American grid operators have seen daily price ranges grow by an average of 300% and by as much as 600%, according to data by Yes Energy, an energy market data provider.