6/21/2023 0 Comments National grid electric loginBut when viewed from a cost-benefit perspective, especially during a time when the supplies and supply chains are already in a crisis situation, this particular effort by DOE seems ill-advised. Tighter efficiency standards like the ones proposed by DOE are not any sort of bad thing when viewed in a vacuum. That’s a flashing red light about the need for us to make sure that we are thinking about the complete energy value chain, which includes the transformers and some of the system requirements that can be damaged either through weather or through human action, vandalism, criminal activity, what have you.” “I mean, that’s if you have a significant weather event or you have a significant outage, or if you have damage like we saw in North Carolina late last year or in Washington State or Oregon after that. “The timelines I have heard for the smaller transformers are up to two years, and for the large transformers that can be up to five years,” he says. In conclusion, the European Commission's proposal is a step in the right direction, but the five key issues identified by Eurelectric need to be addressed to ensure its success.Todd Snitchler, President of the Electric Power Supply Association ( EPSA), agrees that the biggest point of concern centers around larger, distribution transformers. All flexibility options should be considered, and flexibility support should be embedded in existing markets and capacity mechanisms where they exist. National regulatory barriers should be removed to boost investment.įinally, flexibility potential should be unlocked in a technology-neutral and market-based manner. Stress tests and reporting requirements should be encouraged instead of normalising hedging strategies and regulating supply offers to the detriment of retail competition and customers' choice.įourthly, grid investment and modernisation are necessary for the energy transition, and tariff design should provide the right incentives to system operators. Thirdly, the right balance between customer protection and supply regulation should be struck. Collateral requirements should be addressed, and untested solutions like virtual hubs should be avoided. Secondly, enhancing forward market liquidity is essential, and quick-wins based on the current set-up should be implemented. Additionally, retroactive changes should be avoided, and measures facilitating the approval and long-term implementation of capacity mechanisms should be considered. However, we have identified the following five key issues that need to be addressed to ensure the proposal's success.įirstly, the focus on long-term contracts and markets is appreciated, but the design needs to be adequate to allow long-term instruments to complement each other. The proposal focuses on enhancing customer choices and boosting long-term contracts and hedging opportunities to encourage investment in renewable energy sources and low carbon technologies. The recent proposal by the European Commission on the revision of the electricity market design has been overall welcomed by Eurelectric.
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