Doing the most with the transmission we have now

Scott Miller | Source: Utility DIVE | Posted 02/04/2025

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Western day-ahead markets will improve the status quo but should be seen as a “way station” to even more efficient RTO-like dispatch.

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The article discusses the challenges and complaints surrounding capacity markets in Eastern power markets, particularly focusing on the PJM Interconnection. It highlights the difficulties in achieving resource adequacy and pricing, emphasizing that while the West is moving towards improved day-ahead markets, there is still a need for a more integrated approach. The author reflects on their experience with PJM and the benefits of integrating systems to enhance transmission flows, suggesting that the current methods are sub-optimal.

Furthermore, the piece critiques the 'contract path' approach used in bilateral markets, which limits the efficiency of electricity transmission. It argues for the necessity of an independent operator to maximize the use of existing transmission resources across a broader region, thereby improving economic efficiency and reliability. The author concludes that while additional transmission infrastructure is needed, optimizing current resources through a more integrated dispatch system would significantly benefit customers in the West.

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Source Link: https://www.utilitydive.com/news/western-transmission-markets-ferc/738923/

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Doing the most with the transmission we have now

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