This is your SolarWakeup for December 6th, 2021

Can We Get Bigger Markets? FERC is signaling a desire for utilities and States to create larger power markets. Coordinated with studies that show that Colorado, as an example, would lower consumer costs if they entered a Western market expanding energy volumes. We saw similar efforts being fancied in the Southeast, but with less competition.

What Should The Price Signals Be? If you think a bigger market is helpful, I would argue that wider markets that operate faster would be even better. Creating value, i.e. price signals, i.e. ways for people to make money, would create behavior that enhance the grid resilience and flexibility. Imagine if behind the meter solar and storage could get capacity dollars and dynamic pricing for energy exports, that would create more capitalistic investment by homeowners. If industrial warehouse owners could generate income if the tenant leaves or uses less energy than the rooftop can generate, then more generation would get built where it’s needed. Everyone complains that solar is an ‘as available’ resource, but never wants to create the price signal that provides the upside to make it a shaped curve generation. 

Opinion

Best, Yann