A Special issue on the Staff Report to the Secretary on Electricity Markets and Reliability
In August 2017, U.S. Secretary of Energy Rick Perry received the 'Staff Report to the Secretary on Electricity Markets and Reliability.' The controversy around the aim and scope of the report has sparked heated discussions, but the way smart grid paradigms and applications are affected or may affect the report’s conclusions have received little attention, until now. The following articles from world-renowned industry experts and academic scholars provide some much-needed analysis on various aspects of the report.
By Doug Houseman
In August 2017, the DOE released their staff report on Electricity Markets and Reliability. This report was written at the request of Secretary Perry to look at issues in the energy markets and how policy was driving those markets.
By Pierluigi Mancarella
Power systems worldwide are undergoing unprecedented changes and experiencing significant challenges, particularly in terms of reliability, while attempting to transition towards a low-carbon energy system. The “Staff Report” has outlined several of these challenges and potential solutions for the case of the US power system, especially in terms of potential reliability issues in operating regions with large-scale penetration of Renewable Energy Sources (RES). Similar issues are experienced in the National Electricity Market (NEM) in Australia.
By Michael Emmanuel, Ramesh Rayudu, and Ian Welch
The dominating trend of variable renewable energy (VRE) sources continues to underpin the early retirement of baseload power generating sources such as coal, nuclear, and natural gas steam generators. However, the need to maintain system reliability under dynamic environmental and market conditions requires advanced levels of coordination and collaboration amongst stakeholders. Although maintaining a diverse generation portfolio is necessary for grid reliable operations, identifying the best VRE resources from both economic and engineering perspectives is pivotal in ensuring minimum overall system cost, reliability improvement, and increased resource diversity. The engineering screening entails capacity and reliability analysis coupled with highlights on timing, severity and location of constraints on the grid. With respect to the technical analysis, the economic screening determines the baseline avoided cost and cost-effectiveness of the VRE sources. Further, uncertainty analysis can provide the required refinement for the entire analysis to give a robust recommendation of the VRE choice.
By Ryan Wiser, Andrew Mills, Todd Levin, Audun Botterud
The impacts of wind and solar on wholesale power markets in the United States have been limited so far. However, the impact will change as the penetration of variable renewable energy (VRE) increases.