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"Significant" support for resiliency pricing plan by US energy head

Author: Patrick.

October 25 (Renewables Now) - US Energy Secretary Rick Perry’s proposal to back power generators that help keep the grid reliable and resilient has attracted “significant amount of support”, the Department of Energy (DOE) said in a short statement today.

Perry in September directed the Federal Energy Regulatory Commission (FERC) to quickly start work on new market rules to ensure that the reliability and resiliency attributes of generators with on-site fuel supplies, such as coal and nuclear power plants, “are fully valued”. The FERC was asked to “consider and complete final action” within 60 days from publication in the Federal Register.

“It is worth noting that even some critics of the proposal acknowledge there is a problem and that FERC needs to act to address pricing in the electric markets” said Shaylyn Hynes, DOE Press Secretary.  The review of the received comments is in progress.

At a hearing on grid reliability before the House Energy and Commerce Committee early in October, the CEO of the American Wind Energy Association (AWEA) said the proposal to provide payments to specific resources based on arbitrary requirements is anti-competitive, and it could undermine electricity markets that are actually boosting reliability and reducing costs for consumers. Tom Kiernan believes the focus should be on identifying and compensating for the reliability services that are needed and not the fuel type of the generator or other characteristics, such as onsite fuel stocks.

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Browse all articles from Tsvetomira Tsanova

Tsvet has been following the development of the global renewable energy industry for seven years now. She's got a soft spot for emerging markets.

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