The real story of Texas VPP policy with Arushi Frank, Founder of Luminary Strategies
Jul 12, 2024
auto_awesome
Arushi Frank, policy wizard and Founder of Luminary Strategies, shares insights into Texas VPP policy, challenges in energy innovation, and the future of residential DERs. Topics include ERCOT's VPP program, case studies in Australia and the UK, regulatory understanding of consumer adoption, and the evolving landscape of distributed energy resources.
Future trajectory of retailing towards dispatchable energy solutions emphasized.
Role of retailers in power markets essential for risk management and cost hedging.
Innovative utility strategy involves dual-use batteries for enhanced reliability and resilience.
Deep dives
Introduction of Task Force and Development of Program
The podcast episode delves into the inception of the task force focusing on Ader and the development of the program. Stakeholders, including Jason Ryan and the utility companies, collaborated to create a capacity model for dispatchable energy. Through Microsoft Teams, the team streamlined communication and worked on introducing the first version of the Ader governing document.
Leadership Roles and Merits of Ader
The podcast highlights the leadership roles of individuals like Jason Ryan and Arushi Sharma Frank, emphasizing the significance of their collaboration to advance Ader. They harnessed their expertise to champion the program, bridging gaps and ushering in a new narrative around dispatchable energy. Their teamwork and commitment led to a monumental shift in understanding the value of net injection and reliable capacity.
Legacy and Future of Ader
The episode reflects on the legacy and potential future of Ader, underlining its transformative impact on energy markets. Arushi Sharma Frank's teaching efforts, commitment to stakeholder engagement, and dedication to policy changes underscore the profound implications of the program. The narrative depicts a pivotal moment in energy policy and the crucial role of comprehensive stakeholder collaboration for sustainable energy transitions.
Evolution of Retailing and Clean, Dispatchable Energy
In the podcast, the evolution of retailing towards clean, dispatchable energy solutions is highlighted as a pivotal shift in the energy landscape. Arushi Sharma Frank's vision for retailers to adopt a model akin to Jen Taylor's with consumer-oriented, dispatchable devices underscores the paradigm shift towards a sustainable energy future. The episode showcases the strategic importance of Ader in reshaping energy retailing dynamics.
Retail Function Necessity in Power Markets
The role of retailers in power markets is essential, not just as financial entities but as active participants. The design of retail competition requires retailers to engage in risk management and cost hedging for consumers. The involvement of retailers ensures a cost-effective approach to risk management and aligns various market parties around the concept of affordable risk hedging.
Innovative Utility Strategies with Batteries
Exploring innovative utility strategies involves utilizing batteries for dual-use purposes. By implementing batteries to serve both wholesale and retail functions through private use networks, utilities can enhance reliability and resilience. Strategies like the NPR are 1100 policy drive the utilization of batteries to provide backup power during substation outages, optimizing economic and operational efficiency.
Future Vision for VPPs and Market Evolution
The future trajectory of virtual power plants (VPPs) envisions a shift towards a well-informed rate design spectrum that accommodates diverse market models. By addressing the convergence of capacity markets, energy markets, and transmission & distribution (T&D) benefits, VPPs are positioned to emerge as a versatile resource. Collaborative efforts aim to develop a standardized approach that maximizes the value proposition of VPPs across different utility and market contexts.
Batteries in Texas: Changing Metering Rules for Mega Pack
Changing metering rules in Texas, especially NPR 1020, affected the deployment of Megapack batteries as viable assets in the wholesale market. The altered rules allowed for separate billing and metering of the charging energy going to the battery, which was crucial for economic valuation. Megapack's deployment was contingent on these changes to accurately reflect the charging energy's impact.
Integration of Batteries in Transmission and Wholesale Markets
The discussion highlighted the evolving role of batteries as assets in both the transmission and wholesale markets, necessitating a shift in market rules and infrastructure. The concept of batteries serving as both transmission and power plant resources underscores the need for comprehensive valuation frameworks and cost allocation models. The potential reintegration of generation, transmission, and distribution functions in regulated and deregulated markets points towards a future paradigm shift in utility ownership and market dynamics.
Last week we were lucky enough to sit down with Arushi Sharma Frank, the policy wizard who while at Tesla Energy helped turn Texas into one of the DER capitals of the world. She gives us the in depth history of of how ERCOT’s VPP program was forged — a story our co-host James was also a part of. We also talk about the rest of her time at Tesla, case studies in Australia and the UK, how regulators still don’t understand organic consumer adoption patterns, the Obamacare of power markets, where residential DERs are headed, and what Arushi is focusing on now with Luminary Strategies. Recording this episode was super fun, so we hope you enjoy it as well. Pretty sure Arushi re-DER-pilled the three of us during this one.
This is a public episode. If you’d like to discuss this with other subscribers or get access to bonus episodes, visit www.dertaskforce.com/subscribe
Get the Snipd podcast app
Unlock the knowledge in podcasts with the podcast player of the future.
AI-powered podcast player
Listen to all your favourite podcasts with AI-powered features
Discover highlights
Listen to the best highlights from the podcasts you love and dive into the full episode
Save any moment
Hear something you like? Tap your headphones to save it with AI-generated key takeaways
Share & Export
Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more
AI-powered podcast player
Listen to all your favourite podcasts with AI-powered features
Discover highlights
Listen to the best highlights from the podcasts you love and dive into the full episode
