renewables subsidies

06Jan

The Important Difference Between Capacity and Security

To hear environmental groups and renewable boosters tell it, the Federal Energy Regulatory Commission’s (FERC) recent action to restore competition to PJM Interconnection’s capacity market was a terrible solution in search of non-existent problem. The capacity market is supposed to ensure that PJM’s customers will have adequate generating capacity, including a strong reserve of power, […]
19Sep

Addressing the Epidemic

Wholesale electricity markets are coming undone. They have been compromised by an ever-expanding accumulation of state mandates and subsidies that have turned any semblance of traditional competition on its head. What began as modest state policies initially intended to give emerging variable resources a jumpstart have now become an epidemic. Instead of just a nudge […]
11Sep

Restore Competition to Electricity Markets

Are renewable sources of power ready to stand on their own two feet? Ask wind and solar boosters and the answer would seemingly be yes. The story we’re being told is that after decades of government support, wind and solar projects are now cost-competitive with traditional sources of power. Except when they’re not. Curiously, these […]
25Jul

What We Don’t Know Can Hurt Us

As Americans cranked up their air conditioners to gain relief from sweltering mid-July heat, the grid called for all-hands-on-deck to keep the power flowing. Soaring electricity demand was met by every power plant utilities and grid operators could throw at the challenge. Thankfully, for most Americans, the lights and the AC were there when they […]
01May

Subsidizing Grid Unreliability

As the share of coal power on the Texas grid continues to decline and as greater reliance is placed on renewable sources of generation, Texans are crossing their fingers that they don’t face rolling outages this summer. There’s ample reason for concern. ERCOT, the state’s grid operator, is working with a razor-thin reserve margin of generating […]