US associations say MORP to hurt clean energy's access to wholesale markets

Solar panels in Massachusetts, USA. Author: liz west. License: Creative Commons.

January 23 (Renewables Now) - Four US organisations that represent clean energy companies in the country have expressed their concern that a Minimum Offer Price Rule (MORP) would prevent clean energy resources from taking part in wholesale markets.

Advanced Energy Economy (AEE), American Council on Renewable Energy (ACORE), American Wind Energy Association (AWEA) and the Solar Energy Industries Association (SEIA) on Tuesday filed a request with the Federal Energy Regulatory Commission (FERC) for rehearing on its order for a MORP in the PJM capacity market.

PJM coordinates the movement of wholesale electricity in 13 states and the District of Columbia.

According to the request for rehearing, the MOPR order exceeds FERC's jurisdiction. It says that the FERC does not have the authority to interfere with the states' ability to select clean energy options.

"The effect of FERC’s order will be to pad profits for incumbent fossil fuel generators, on the backs of customers forced to pay more, by preventing state-supported clean generators from clearing the capacity market," says a press release earlier this month.

The organisations also want the FERC to clarify that the order does not apply to certain voluntary renewable energy credits and that a property tax abatement is not considered to be a state subsidy.

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Before joining Renewables Now, Alex was a UK-focused business news reporter. Now she is covering global news from the renewable energy industry with a special interest in M&A.

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