Southeast Energy Exchange Market (SEEM) is the newest effort by utilities within the southeast to prepare themselves to appreciate value financial savings with scale. Until now, an vitality imbalance market from the west is a residing market mannequin for multi-state governance and market participation. None of the southeast or west fashions go so far as the regional transmission organizations within the east. A real vitality market reveals the locational value for transacting vitality and sends locational alerts for capability. That is what renewable builders within the southeast want.
If renewable integration is the first focus of the SEEM, then an ancillary providers market must be established that co-optimizes an vitality want with a frequency regulation want. There is not any marketplace for these providers with out transmission. Hence regional planning is required to determine the community upgrades that give probably the most profit for renewables.
SEEM is an efficient first step in the direction of organized markets for renewables
Energy Imbalance Market (EIM) within the west is a piece in progress that began in 2014. SEEM is an efficient first step for southeast utilities to coordinate in 2021. Transmission Owners (TOs) within the Midwest, energy pool members in New England and the Mid-Atlantic space took this step nearly 20 years in the past.
In the final 20 years, what has modified is the vitality transformation in the direction of extra fossil-free technology and extra distributed vitality assets. Part of the market enhancements in well-established markets is as a result of carbon-free nature of assets each on the availability and demand aspect.
Organized Markets within the japanese interconnection present vitality and capability value transparency
The Regional Transmission Organizations (RTOs) within the japanese interconnection provide an ideal function mannequin for SEEM and renewable vitality pursuits. Why? Because there’s a monitor document to indicate:
- emissions are down because of PJM’s market,
- annual worth proposition research doc and benchmark every RTO’s worth, and
- market reforms occur periodically as quickly as challenges come up.
Another profit is the state regulators’ continued engagement inside states which have organized markets. Organization of MISO States (OMS), Organization of PJM States (OPSI), New England States Committee On Electricity (NESCOE) are prime examples of state regulators having a seat on the RTO desk.
Perhaps the most important advantage of collaborating in vitality markets for RE builders is the worth transparency round which places and zones at an RTO command the next capability value versus the vitality value arbitrage alternatives at transmission nodes. This value signaling is why we see extra RE initiatives looking for to interconnect at PJM than MISO or SPP, for instance.
Generator Interconnection Queue supplies transparency and stability round interconnection procedures
A profit from a real organized market is stakeholder governance. As quickly as stakeholders elevate a big subject, RTOs reply with market reforms and workshops to bounce off concepts to unravel the problem at hand. MISO and SPP went by means of a queue reform course of, and PJM is following go well with.
What is probably apparent in these RTOs and several other states inside the RTOs is that there’s a frequent rule set that applies to all of the renewable builders based on the scale of the venture (in MWs) they want to interconnect. If anybody needs to interconnect at a transmission substation in PJM, it’s the similar rule to attach in Ohio or Pennsylvania. We don’t know if this frequent set of interconnection guidelines is contemplated within the SEEM effort.
Transmission community upgrades alleviate the inevitable renewable curtailment ache
A advantage of RTOs is regional planning, which supplies them the flexibility to look from a 50,000-foot degree for transmission initiatives that meet a number of coverage targets and handle reliability and financial drivers. Individual RE builders within the southeast could also be centered on their initiatives, as they need to be. However, inevitably there can be a necessity for transmission upgrades that facilitate extra renewable initiatives that minimize throughout a number of states. Hence…