Response is Vital in a Grid with Growing Variable Resources
The Pacific Northwest Demand Response Project (PNDRP) recently invited RAP Principal Rich Sedano to speak at their daylong meeting focused on incorporating demand response into utility planning. In addressing this diverse group of key energy stakeholders, Mr. Sedano provided an overview of the main elements of the RAP publication “What Lies Beyond Capacity Markets?” This paper discusses the reasons why, in power systems with large shares of variable renewable production, existing capacity market models may no longer be up to their intended task of driving the investments required to deliver least-cost reliability. He then applied these principles to the actual market situation in the Pacific Northwest. With the region seeing significant increases in variable generation, Mr. Sedano advised participants on how to ensure reliability without undermining markets, without locking in resources incompatible with reliability, and without excessive renewable energy integration costs.