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WTF is ELCC with the man who predicted the PJM capacity price spikes, Nic Freschi
DER Task Force
Bidding Risks in the Solar Capacity Market
In the solar capacity market, bidders account for potential risks, particularly concerning penalties. Solar providers must establish a minimum capacity price that compensates for the risk of incurring penalties, which they estimate to occur infrequently, such as three hours a year. A zero capacity price is not viable as it would expose them to losses without sufficient compensation. Consequently, bidders only propose prices that justify the risk of being penalized, leading to the possibility of not being selected for capacity offers.
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