FERC Proposes Integration of Variable Energy Resources with the Power Grid for Enhanced Savings

  • Date: November 29, 2010
  • Source: Admin
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The Federal Energy Regulatory Commission (FERC) put forward modifications to its rules with the intention to establish integration of variable energy resources, which are rapidly emerging, with the nation’s power grid. This is in line with maintaining dependability and introducing prospective savings to consumers.
Large Generator Interconnection Agreements and Open Access Transmission Tariffs (OATT) filed by providers of public utility transmission are intended to be modified, necessitating service offerings with enhanced resourceful amalgamation into the grid system of solar, wind, hydrokinetics, and other variable energy resources.
FERC Chairman Jon Wellinghoff commented, “Most of the new power plants for which developers are seeking access to the grid are variable resources such as wind and solar generators.” “This proposal will help the Commission to cost-effectively integrate these and other variable generators into the grid in a way that helps maintain reliability and operational stability.”
The Notice of Proposed Rulemaking (NOPR) recommends extending an option to renewable power producers (customers) to move away from the present procedure of hourly scheduling and instead sell power to the grid 15-minute intervals. The shorter time periods schedule will enhance more accuracy in scheduling, leading customers requiring less number of purchases or supplies of subsidiary services. Variable energy generators will be required to provide transmission companies with weather data and operational information.
Intra-hour scheduling of wind energy has a particular impact with this ruling.
What it means
The country will benefit from rapid growth in clean energy, thus protecting renewable energy providers from paying exorbitant rates to grid operators for connection. Variable energy providers can now sell energy in a more efficient and flexible manner in shorter intervals to the grid.
It would also mean a more rapid uptake of clean energy across the country, protecting renewable energy generators from “unjust” costs being demanded by grid operators to connect.
Events leading to this
In April 2010, the Federal Trade Commission (FTC) recommended integration of alternative sources of energy with the nation’s electric power grid, urging FERC to find ways to reduce costs of electricity and encourage cost-reduction, efficient choices to the market.

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