Simplifying Complexity Governing the power grid
Jun 24, 2024
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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Power Grid Governance
- The power grid's governance, crucial for its function, involves decisions on planning and operation.
- These decisions significantly impact grid behavior, renewable energy integration, and electricity costs.
Traditional Grid Governance
- For nearly a century, utilities controlled the power grid, making decisions about power plants and transmission lines.
- Regulators oversaw these decisions, prioritizing affordability and reliability.
Drivers of Deregulation
- Economic concerns about high electricity costs and uncompetitive industries drove the need for regulatory reform.
- The reform aimed to replace regulatory control with competition, using the grid as a platform.