resource adequacy california

Resource Adequacy Homepage - California Public Utilities Commission While not required, the utilities may secure capacity contracts beyond the Flexible Resource Adequacy Power jobs in California - indeed.com Options Download CAISO Resource Adequacy Fact Sheet - Pasadena 100 California Energy Markets Editor Jason Fordney and Clearing Up Associate Editor Dan Catchpole talk about Southwest Power Pool's vision for an RTO in the West . Capacity Requirements Process, Copyright 2018 State of California, California Public Utilities Commission, Accessing Public Advocates Office Pleadings, NEM 3.0: Reforms to Rooftop Solar Incentives to Promote Equity, South Orange County Reliability Enhancement Project. Resource Adequacy (RA) program in 2005. Measuring Resource Adequacy - Versify Solutions Johannes Pfeifenberger Principal. 2023 Net Qualifying Capacity Values for Resource Adequacy Resources - CAISO Both aspects are required to meet customer demand reliably. A capacity tag is simply the right of the holder to claim such capacity in a showing at the CPUC. In August 2020, a record-setting heat wave spanned the western United States- and triggered blackouts in California. The Sample 1 Sample 2 Sample 3 Based on 5 documents Save Copy Resource adequacy in the West looks even more challenging than it did three years ago when what has become the Western Resource Adequacy Program was initiated. PWP has to maintain an installed capacity that is 17.5% greater than city-wide demand, in order to satisfy CAISO's reserve margin. Please contact clientservices@accessintel.com or call 888-707-5814 (M Th 9 am 5:30 pm and F 9 am 3 pm. Drivers of the Resource Adequacy Contribution of Solar and Storage for Welcome to Resource Adequacy Assessment Resource Center RA is often referred to as the replacement for the Reliability Must Run (RMR) commitments entered into between generators and the California Independent System Operator (CAISO). While there are valid concerns over the time needed for CAISO to absorb and adapt the states RA program, this upgrading of the CPUCs capacity and the CPUCs own improvements to the RA program would also take time. Under its Resource Adequacy (RA) program, the California Public Utilities Commission (CPUC) requires load-serving entitiesboth independently owned utilities and electric service providersto demonstrate in both monthly and annual filings that they have purchased capacity commitments of no less than 115% of their peak loads. Table 1: RA Capacity Product Table, for 2019-2020* PRODUCT DELIVERY POINT MINIMUM VOLUME A (supply or demand) resource that commits to provide RA undertakes a must-offer obligation to bid or self-schedule its capacity into the CAISO market. Resource Adequacy. Apply today, it's free! The most obvious fix to coordination and expertise challenges would be to move the RA program so that it falls under CAISOs domain, aligning forward RA planning with short-term operational reliability and taking advantage of CAISOs system data access, technical expertise, and its ability to regularly diagnose problems and problem solve. The IRAs benefits could be higher depending on how nuclear tax credits are calculated, the utility said in a Wednesday filing at the Missouri Public Service Commission. obligations are currently specified to meet local area and system-wide needs. To qualify to sell RA, a resource must register with the CAISO and be tested to determine if it is deliverable to load when the transmission system is stressed by high demand. While some other markets in the US, such as PJM and the New England ISO, operate centrally cleared capacity markets, Californias market is bilateral, based on individual transactions between LSEs and resource owners. The capacity credit of storage, even though it is fully controllable by the system operator, strongly depends on the duration of storage. California energy regulators this week took actions to maintain electric-grid reliability at a local level, along with other measures aimed at resource adequacy. Separate capacity Representing the Demand Side in Resource Adequacy - ESIG Continuing to muddle through with periodic CAISO stage 3 emergencies, in addition to ongoing utility wildfire shutoffs, sends a signal to consumers that they should take electric reliability into their own hands. 5.3 California Independent System Operator32 Recommendations on Reliability . Resource Adequacy and Beyond: Increasing Grid Reliability in California In the wake of the California Electricity Crisis of 2000-01, the state determined that it was necessary to develop a system that would prevent the kind of power shortages, extreme price spikes, and rolling blackouts that occurred during that turbulent period. California's program has three different types of resource adequacy requirements, each designed to keep the grid operating under different types of conditions: System Capacity: These requirements help keep the lights on during the annual "peak load," when California uses the most electricity. Resource Adequacy Review Resource Adequacy Review Project No. Nearly 20 years later, and despite significant changes in Californias electricity industry, the original RA program design has remained stubbornly intact. California load-serving entities experience increasing challenges in California Market - What is Going on with RA, RECS, CCAs and FERC Approves CAISO's Resource-Adequacy Changes Get the free daily newsletter read by industry experts. A robust RA program rests on six components: (1) reasonably accurate load forecasting; (2) a planning reserve margin that accurately accounts for generation and transmission outages, load forecast uncertainty, and in the future perhaps some solar and wind forecast uncertainty; (3) reasonably accurate capacity crediting for different resources; (4) penalties for non-compliance with RA procurement obligations and/or backstop procurement on behalf of load serving entities; (5) performance requirements to ensure that resources are available and can perform in real-time; and (6) market designs and operational processes that enable system operators to effectively commit and dispatch available generation when it is needed. Sort by: relevance - date. This fact will be important to keep in mind when we next turn Mikes Corner to consider a potential expansion of the ISO to other Western states, and how the RA program might fit into a larger regional grid. California's 2020 Energy Blackouts: Resource Adequacy May Not Have Resource adequacy is of critical importance to all generators, regulators and consumers. Gridworks has launched an initiative to help market leaders discuss current and future challenges for Resource Adequacy, and to evaluate the merits of different approaches to ensure they can meet those . The CPUC dismissed this possibilityas a solution to procurement issues, but the CPUC and state lawmakers should consider it as a means to simplify the RA program, address coordination challenges, and shore up expertise. Through initiatives like the Western Assessment of Resource Adequacy, WECC provides analysis and information on resource adequacy to stakeholders and decision . Ideally, you . Any electricity system, even those transitioning to energy-limited resources and new temperature regimes, can be as reliable as forward planning, organizational coordination and expertise, performance incentives, and customer spending will support. Subscribe to the Utility Dive free daily newsletter, Subscribe to Utility Dive for top news, trends & analysis, The free newsletter covering the top industry headlines, This audio is auto-generated. RA Criteria and Must-Offer Obligation, CAISO This Is a repeal of the Inflation Reduction Act likely? It's a darn good . Senator Van Hollen, U.S. Representative Raskin, US, Burns & McDonnell and Bay Ltd. Have Teamed to Boost U.S. Offshore Substation Supply Chain, Clarity Grid Releases 3Q Nodal Updates for US ISOs, By signing up to receive our newsletter, you agree to our, Webinar 8 Under its RA program, the California Public Utilities Commission (CPUC) requires load-serving entitiesboth independently owned utilities and electric service providersto demonstrate in both monthly and annual filings that they have purchased power generation capacity commitments 9 of no less . Fixing California's resource adequacy woes | Utility Dive SCE 2020-2024 Resource Adequacy e-Solicitation The California Public Utilities Commission (CPUC) requires suppliers and load-serving entities- including utilities such as SCE-to have enough contracted capacity to meet system, local, and exible resource adequacy requirements. The California Public Utilities Commission at a June 23 meeting approved a proposed decision from Administrative Law Judges Debbie Chiv and Shannon O'Rourke regarding resource-adequacy . The new capacity will . reduce the risk of future price spikes. We are first in your inbox with the most important news in the industry―keeping you smarter and one-step ahead in this ever-changing and competitive market. Resource adequacy is the ability to meet consumers' energy needs. IEPR Commissioner Workshop on Western Electricity System Integration The real questions are what level of bulk reliability we want and whether we are willing to invest in the institutional change needed to support it. How to Reform California's Inadequate Resource Adequacy Regime The CAISO also recently amended its tariffs to allow aggregations of distributed resources to participate in its markets. The groups plan to identify . But given the rather incomplete articulation of the generators performance obligations associated with such a commitment within the CAISO tariff, load-serving entities and generators frequently get stalled on determining the performance obligations, the associated remedies, and the appropriate level of compensation for taking on such obligations. He teaches a graduate level course at Stanford University titled Electricity Economics that provides a foundation of economic . Resource adequacy (RA) is energy designated by the state to be bid into the market for the reliable operation of the power grid, minus the impacts of outage derates. California's resource adequacy program requires that load-serving entities procure a certain amount of capacity, including flexible capacity, during each month to ensure system reliability. For intermittent resources like wind and solar, this value is typically well below the nameplate capacity of the facility, reflecting the probability that they will be generating at the time of the system peak. Why Resource Adequacy is Such an Issue Now and, in the Years to Come Calif 2020 Blackout Lessons Learned NERC Reliability Assessments: Approaches to Evaluate Emerging Resource Adequacy Challenges NERC, as the designated Electric Reliability Organization, has the obligation to conduct periodic assessments of bulk-power system reliability. Electricity Wholesale Markets & Planning. In addition to the high-level policy issues, the CPUC workshops also touched upon the seemingly pedestrian topic of how to contract for RA. For one, the programs organizational coordination has become increasingly complex over time, with overlapping and duplicative responsibilities between state agencies (the CPUC and California Energy Commission) and the system operator (CAISO) that obfuscate planning and blur incentives. minimum year-ahead obligation in order to obtain the best contract prices and Trends in California speak to the state's evolving needs for longer duration storage if 4-hour storage falls short of what's needed in the near future. Resource Adequacy. Millions of lower-income families will face unaffordableenergy prices this winter, and those relying on Social Security may be particularly vulnerable, warn customer advocates. Resource Adequacy in California: Options for Improving Efficiency and Effectiveness. and Southern California Edison's distribution service areas, the following adjustments to the three-year local requirements are adopted: (a) For 2020, the 50 percent . PG&E is procuring the energy storage capacity from Recurrent in response to a directive from the regulator California Public Utilities Commission (CPUC) in March. Public Utility Commission : Resource Adequacy - Oregon Load-serving entities and generators are spending excessive time negotiating provisions that try to reconcile the showing requirements of the CPUC and the current CAISO tariff requirements. One significant factor compounding the grid's constraints is that while California's resource adequacy program has historically focused on procuring enough resources to meet gross load peak . Program Overview From calendar year 2006 through calendar year 2007, CAISO was able to reduce its RMR purchases from approximately 10,000 MW to approximately 4,000 MW. Flexible Looking Ahead: Reliability & Resource Adequacy in the West Each resource is assigned a Net Qualifying Capacity (NQC) value, which defines the amount of RA that it can sell. These purchase requirements are intended to secure sufficient commitments from actual, physical resources to ensure system reliability. This 2022 Resource Adequacy (RA) Compliance Guide (Guide) is meant to inform Load Serving Entities (LSEs) in demonstrating compliance with the CPUC's RA program. Flexible Review of Final 2023 Resource Adequacy Compliance Filings and CAISOprovides several LCR level based reliabilitylevels (N-1, N-2, etc. Oakland, CA 94612 . entities, to secure contracts for electricity capacity at least one-year ahead. Along with . Explore California, Northwest Electric Resource Adequacy at Our January California aims to curtail 'speculative' bids that threaten resource January 6, 2015: Energy Division releasesStaff Proposalas part of the Resource Adequacy Proceeding - RA Program Refinements. Californias continued RA woes have lent credence to the notion that unreliable electricity systems are the new normal, that the transition to non-fossil fuel energy sources and climate change will inexorably lower historical levels of bulk system reliability. Capacity is the maximum electric output That represents the value that a particular resource contributes to a load-serving entity's resource adequacy requirements. PDF Resource Adequacy in California - Brattle Group At root, they are the result of a broken system that needs more radical organizational reform: shifting responsibility for RA from state agencies to the California Independent System Operator. Sunrun added that 10% or more of that RA capacity will come from Sunrun devices installed at low-to-moderate income households. Share. Planning processes help ensure that a system is reliable, with adequate energy supply resources to meet demand, known as resource adequacy (RA), and sufficient capacity in the network and supply resources to deliver that energy reliably, often referred to as security. The California Public Utilities Commission, which oversees the program,initiated proceedingsin 2017 to restructure it, with a focus on addressing procurement challenges resulting from load migration. Solving California's Resource Adequacy Challenges | ICF What is resource adequacy? - POWER Magazine News & Technology for the Global Energy Industry. Fixing California's resource adequacy woes The real questions are what level of bulk reliability we want and whether we are willing to invest in the institutional change needed to support it.. in response to a statutory obligation to establish resource adequacy requirements for the load-serving entities under its jurisdiction, the california public utilities commission adopted a resource adequacy policy framework in 2004, setting system capacity requirements starting in 2006, local capacity requirements starting in 2007, flexible Resource Adequacy Methodologies & Toolkit - EUCI The CPUC decision requested that the CEC launch a stakeholder working group process to develop recommendations for a demand response . The root cause analysis suggests that a principal reason why Californias RA program keeps coming up short is due to failures in planning and performance incentives, but these failures rest on deeper organizational flaws. The lights actually went off after the greatest risk anticipated by California's current Resource Adequacy had passed. Reliability-Wary California Will Procure More Energy Resources to Get Current assumptions that 4-hour storage provides full resource adequacy (RA) credit ; How soon CAISO will start needing long-duration (six hours or longer) storage or risk facing serious . To do this, industry proposes to reduce the contracting between the load-serving entity and the generator to the sale of a "capacity tag." Why California Is Scrambling to Meet Summer Demand, California and Oregon Sail Forward on Offshore Wind, How to improve performance and reduce emissions when a major hardware upgrade is not financially viable, Building a Plan to Support Continued Growth in EV Adoption, Reducing the Commercial Risk of Hydrogen Projects Leveraging a Digital Twin. Keep up with the story. Data Requests and Selected Data Responses. In the simplest terms, RA is just a regulatory construct developed to ensure that there will be sufficient resources available to serve electric demand under all but the most extreme conditions. in California. establishes mandatory obligations for utilities, and other load serving WECC's Resource Adequacy work identifies potential reliability risks to the Bulk Power System stemming from changes in loads and resources over the next 10 years. Capacity Requirements, CAISO If a system experiences resource inadequacy, one of these components must have gone awry: load might have been under-forecasted; the planning reserve margin might have been wrong or applied in the wrong hours; capacity credits for different resources might have been inaccurate relative to real-time performance; load serving entities or the entity doing backstop procurement may not have procured adequate resources; resources might have been unavailable or non-dispatchable in real-time; or the system operator might not have been able to deploy resources in time even though adequate generation was available and dispatchable. Leap Extends Resource Adequacy Capacity to California Community Choice The PUC and CAISO have adopted a series of decisions over years to develop the RA program as it exists today. Three clear messages emerge for resource adequacy practitioners to be able to better reflect the impact that demand-side flexibility and customer behavior have on resource adequacy: A conscious effort is needed to rebalance the disparity in detail between supply, storage, and demand representations in resource adequacy assessments in order to . California could gain substantial efficiency benefits by reforming the current LTPP and RAR programs in two important ways. However, the main sources of Californias recent RA troubles are in planning and incentives and, underlying these, organizational responsibilities. Source: CAISO To understand why we need to understand how California's regulatory framework for ensuring reliability, Resource Adequacy, is structured. Recently, the CPUC convened workshops addressing a number of issues related to the future of the RA program. From a contracting perspective, these forms establish an odd relationship. 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