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Policy and solutions / Re: Batteries: Today's Energy Solution
« on: April 13, 2021, 07:12:46 AM »Re: " peaker plants threaten to close down completely unless they are paid a lot more for being on stand by."The structure of payment in each US region may be dramatically different. The range in the US goes from strict monopoly to nearly unregulated free market. All regions except Texas have a balancing authority who is responsible to maintain sufficient reserves. They may do this themselves or contract it out. As these BA's are regulated monopoly's rates are approved to cover these costs These are audited by FERC regularly to ensure sufficient reserves and compliance. The lightly regulated Texas market assumes high enough prices are sufficient motivation for someone to maintain these reserves. This philosophy failed Texas again. If the occasional failure was acceptable this would be the most efficient method. It is not. California is also market based though it is subject to federal oversight. California also had a failure for a different reason. California regularly imports about 6-8 gw of power. They own/contract sufficient assets but it is difficult to build a power plant in California due to NIMBYism. Many generating assets for California are out of state. Hotter temperatures lower transmission capacity. Hotter temperatures also lower output of thermal plants. During peak power demand last summer California realized they did not have enough transmission/local power to meet demand. As building out either transmission or power plants is slow the quickest fix was determined to be 1.5 gw of battery storage latter revised to 1.7 gw. Most of that should be online for the July August peak season. AFAIK Tesla batteries (others may now too) now provide ancillary grid services, techno speak for spinning reserve. In any case batteries are now better (read faster) at providing ancillary grid services.
I believe in the USA there are already payments for both spinning reserve and standby capacity. I think the difference is that the first is immediately available to take excess load (subject to generator ramp limits), the second has dispatch calls every 5 minutes and must come to full power in ten.
sidd