QuickTalk: Capacity Accreditation Reforms are Coming: Are you Prepared?
Tuesday, September 12, 2023
4:00 PM – 4:30 PM PDT
Location: Veronese 2405, Level 2, The Venetian
Learning Level: 201: Applies to those with some experience who are looking to build on or enhance existing knowledge.
As states across the country intensify their efforts to decarbonize their electrical systems, grid operators are facing the challenges associated with efficiently integrating renewable resources into the electricity mix. One of the major derivative challenges is evaluating renewable and storage resources in capacity markets. Capacity accreditation is the practice of measuring and valuing a given resource’s contribution to maintaining resource adequacy and is a critical part of the market design that is required to integrate renewable and storage resources. This case study will share how capacity has historically been accredited in wholesale electricity markets, and associated shortcomings, grid operator modification methodologies, novel capacity accreditation methods and the effect on market prices, and how developers, asset owners and investors can address associated risk.
Gain a deep understanding of the challenges faced by grid operators in efficiently integrating renewable resources into the electricity mix. Recognize the importance of capacity markets and the role of capacity accreditation in maintaining resource adequacy while decarbonizing electrical systems.
Explore the historical methods of capacity accreditation in wholesale electricity markets and the associated shortcomings. Learn about the modifications made by grid operators to accommodate renewable and storage resources and the introduction of novel capacity accreditation methods.
Understand the impact of capacity accreditation on market prices and the implications for developers, asset owners, and investors. Identify the associated risks and learn strategies to address and mitigate these risks when dealing with capacity accreditation for renewable and storage resources in wholesale electricity markets.