Professor Seth Blumsack from Penn State discusses the governance of the power grid, focusing on Regional Transmission Organizations' role and impacts on grid operations. The episode explores the evolution of electricity industry regulation, complexities in regional electricity market models, decentralizing control in power grid management, and the impact of market rules on energy storage integration.
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Quick takeaways
Transition from traditional to competitive governance in power grid management.
Decentralization challenges and the necessity of centralized control for grid reliability.
Deep dives
Evolution of Power Grid Governance
The podcast discusses the evolution of power grid governance, highlighting the transition from a traditional model to a competitive approach. Initially, the grid was governed by utilities under state supervision for about a century, focusing on reliability and affordability. However, deregulation introduced a competitive model through Regional Transmission Organizations (RTOs), aiming to enhance efficiency and incorporate renewable energy sources.
Challenges of Decentralized Systems
The episode delves into the challenges of decentralization in power grid control. While decentralization seems promising in theory, the dynamic and unpredictable nature of the grid makes centralized control necessary for ensuring reliability. The need for rapid information exchange and alignment of incentives with system goals poses significant challenges in achieving effective decentralized grid management.
Impact of Market Rules on Technology Integration
The impact of market rules on technology integration within deregulated electricity markets is explored. The rules governing market participation can significantly affect the adoption and value of technologies like energy storage. Variations in market rules across different regions can either facilitate or hinder the integration of emerging technologies, shaping the future of reliable, low-carbon energy systems.
In today’s episode, we’re once again joined by Seth Blumsack, Professor of Energy Policy and Economics and International Affairs in the Department of Energy and Mineral Engineering at Pennsylvania State University, to talk about the power grid.
In the past, we’ve spoken to Seth about the history of the power grid and how the power grid fails. In today’s conversation, we discuss how it is governed.