Reliable vs. Intermittent Generation: A Primer (Parts I and II) - Highlighted Article

From: Master Resource

By: Bill Schneider

Date: March 1, 2023

Reliable vs. Intermittent Generation: A Primer

Part 1     ---     Part 2

“Why should a thermal plant spend money in a government-rigged market that threatens a reasonable profit? Why should the plant even remain in the market under these conditions?”

“For IVREs it’s a no-risk deal, with markets guaranteed and taxpayers country-wide adding profits. But what about the need for reliable power?”

This two-part post (Part II here) is a follow-up to Robert Bradley’s recent IER article, “Wind, Solar, and the Great Texas Blackout: Guilty as Charged.” His article discussed how regulatory shifts and subsidies favoring Intermittently Variable Renewable Energy (IVRE) producers resulted in prematurely lost capacity, a lack of new capacity, and upgrade issues with remaining (surviving) traditional capacity. These three factors–“the why behind the why”–explain the perfect storm that began with (or was revealed by) Storm Uri.

Part I below describes how the market was originally meant to work–but has not worked given the governmentally redesigned power market, beginning with generation. The change was caused by:

Investment monies lured away from developing baseload capacity by government subsidies and special tax incentives, and
Operating opportunities lured away by “first-use” mandates. First-use mandates are especially pernicious as grid operators must purchase from IVREs whenever they are producing, leaving the reliable generators idle. (continue reading)

Reliable vs. Intermittent Generation: A Primer

Part 1     ---     Part 2