Brattle | Insights & Events | Electricity Wholesale Markets & Planning https://www.brattle.com/ Mon, 01 May 2023 20:58:06 +0000 en-US hourly 1 https://wordpress.org/?v=6.1.1 https://www.brattle.com/wp-content/uploads/2021/05/favicon.png Brattle https://www.brattle.com/ 32 32 Brattle Consultants Examine Potential Benefits of Market Reforms in South Carolina’s Electricity Sector in New Report https://www.brattle.com/insights-events/publications/assessment-of-potential-market-reforms-for-south-carolinas-electricity-sector/ Mon, 01 May 2023 18:37:52 +0000 https://www.brattle.com/?p=50219 In a new report presented to the Electricity Market Reform Measures Study Committee of the South Carolina General Assembly today, Brattle consultants find annual savings over $300 million from participation in a regional wholesale market. The finding is part of an examination of the nature and size of potential benefits that could be achieved through […]

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In a new report presented to the Electricity Market Reform Measures Study Committee of the South Carolina General Assembly today, Brattle consultants find annual savings over $300 million from participation in a regional wholesale market. The finding is part of an examination of the nature and size of potential benefits that could be achieved through market reforms in South Carolina’s electricity sector.

The Brattle report assesses three potential areas of reform:

  • Wholesale market reforms that could improve the cost-effectiveness of generation resource operations and trade across regions;
  • Resource planning and competitive investment reforms that seek to improve the cost-effectiveness of resource investment decisions, some of which can also shift investment risks from customers to generator owners; and
  • Retail market reforms that would offer customers greater opportunities to select their preferred resource mix or rate structure, including possibly from multiple competitive retail suppliers.

The authors find that South Carolina ratepayers stand to gain substantial benefits from a measured introduction of enhanced regional coordination and market reforms in all three of the above categories. These benefits can be achieved through incremental reforms that follow best practices in the sequencing and introduction of various reforms.

The report was prepared by a Brattle team that included Principals John Tsoukalis, Dr. Kathleen Spees, and Johannes Pfeifenberger; Senior Consultant Andrew Levitt; Research Associates Dr. Andrew W. Thompson and Oleksandr (Sasha) Kuzura; Senior Research Analysts Evan Bennett and Megan Diehl; Research Analysts Son Phan and Ellery Curtis; Electricity Specialist Sylvia Tang; and former Senior Research Analyst Ryan Nelson.

The full report, “Assessment of Potential Market Reforms for South Carolina’s Electricity Sector,” and a summary presentation of the recommendations can be found below.

View Report 

View Summary Presentation 

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Brattle EDAM Simulations: PacifiCorp Results https://www.brattle.com/insights-events/publications/brattle-edam-simulations-pacificorp-results/ Thu, 27 Apr 2023 21:21:59 +0000 https://www.brattle.com/?p=50158 Presented on April 26, 2023, before the Public Service Commission of Utah in Docket No. 23-9899-01, Notice of Technical Conference. View Presentation

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Presented on April 26, 2023, before the Public Service Commission of Utah in Docket No. 23-9899-01, Notice of Technical Conference.

View Presentation

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Brattle Economists Review Coal-Fired Electricity Generation in the US in a New Report https://www.brattle.com/insights-events/publications/brattle-economists-review-coal-fired-electricity-generation-in-the-us-in-a-new-report/ Thu, 27 Apr 2023 17:14:36 +0000 https://www.brattle.com/?p=50151 Coal-fired power capacity and generation in the US have experienced dramatic declines over the last 20 years due to increasing competitive pressure from economic forces and other factors. From 2005 to December 2022, the US coal-fired fleet capacity decreased from 321 GW to 219 GW, and annual generation from coal-fired assets fell from 1,886 TWh […]

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Coal-fired power capacity and generation in the US have experienced dramatic declines over the last 20 years due to increasing competitive pressure from economic forces and other factors. From 2005 to December 2022, the US coal-fired fleet capacity decreased from 321 GW to 219 GW, and annual generation from coal-fired assets fell from 1,886 TWh to 665 TWh.

In a new report prepared for the Center for Applied Environmental Law and Policy, Brattle economists review the recent history of changes in the US coal generation fleet and explain factors contributing to the decrease in coal-fired generation capacity over the past 20 years. While attributing coal plant retirements to a single driver is challenging, the report identifies key factors that were common contributors to historical and currently announced retirements of coal plants. These factors include decreases in natural gas prices, lower costs to build and operate renewable and storage resources, low growth in electricity consumption, increased costs to operate and maintain coal plants, and federal and state regulations and policies.

The authors also summarize the current state of market fundamentals and regulations affecting the economics of coal plants in the US as well as their near- and medium-term outlook. Notably, the authors explain that provisions in the recently passed Inflation Reduction Act (IRA) that increase the economic attractiveness of clean energy resources have prompted some coal plant owners to re-examine the options for their coal fleet. Using data from planning documents released after the IRA passage, the authors document that after incorporating the IRA incentives in their planning, some coal plant owners find that it is now more economic to retire their coal plants and replace them with clean energy resources.

The full report, “A Review of Coal-Fired Electricity Generation in the US,” is available below. The report is authored by Principal Dr. Metin Celebi, Senior Associate Dr. Long Lam, and Research Analysts Jadon Grove and Natalie Northrup.

View Report

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Building a Better Grid: How Grid-Enhancing Technologies Complement Transmission Buildouts https://www.brattle.com/insights-events/publications/building-a-better-grid-how-grid-enhancing-technologies-complement-transmission-buildouts/ Thu, 20 Apr 2023 18:17:29 +0000 https://www.brattle.com/?p=50092 View Report

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View Report

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Why and How to Start Planning for Offshore Wind Transmission: Reducing Costs and Community & Environmental Impacts https://www.brattle.com/insights-events/publications/why-and-how-to-start-planning-for-offshore-wind-transmission-reducing-costs-and-community-environmental-impacts/ Fri, 14 Apr 2023 13:53:20 +0000 https://www.brattle.com/?p=50033 View Presentation

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The Brattle Group Assists FirstEnergy Pennsylvania Utilities in Long-Term Purchase of Solar Power and Alternative Energy Credits https://www.brattle.com/insights-events/news/the-brattle-group-assists-firstenergy-pennsylvania-utilities-in-long-term-purchase-of-solar-power-and-alternative-energy-credits/ Thu, 13 Apr 2023 14:24:08 +0000 https://www.brattle.com/?p=50023 Through a competitive bidding process conducted by Brattle economists, four FirstEnergy Corp. (NYSE: FE) subsidiaries – Metropolitan Edison Company, Pennsylvania Electric Company, Pennsylvania Power Company, and West Penn Power Company – have successfully solicited bids and entered into long-term power purchase agreements (PPAs) to procure solar power and alternative energy credits from projects in development. […]

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Through a competitive bidding process conducted by Brattle economists, four FirstEnergy Corp. (NYSE: FE) subsidiaries – Metropolitan Edison Company, Pennsylvania Electric Company, Pennsylvania Power Company, and West Penn Power Company – have successfully solicited bids and entered into long-term power purchase agreements (PPAs) to procure solar power and alternative energy credits from projects in development.

The FirstEnergy Pennsylvania utilities have procured, under 10-year contracts, the energy and Solar Photovoltaic Alternative Energy Credits (SPAECs) produced by 20 megawatts (MWs) of solar capacity, with the SPAECs qualifying as Tier 1 solar credits under Pennsylvania’s Alternative Energy Portfolio Standards (AEPS) Act. One SPAEC represents the solar renewable energy attributes of one megawatt-hour of generation from a qualified solar generating facility. The companies’ average cost in this most recent procurement is $74.50 per megawatt-hour for energy and the associated SPAECs.

The Pennsylvania Public Utility Commission (PaPUC) approved the procurement results on February 8, 2023. The procurement was part of the companies’ Default Service Plan Compliance Filing, which the PaPUC approved to meet the state’s AEPS.

The Brattle team, led by Principals Dr. James Reitzes and Dr. Nicholas Powers, was responsible for designing and executing the procurement, including evaluating the bid proposal packages. Brattle has extensive experience designing and managing procurement, open solicitation, and auction processes for utilities and other energy market participants, including purchases and sales of electric power assets such as energy, renewable energy credits, transmission rights, and output and ownership shares in electric power plants.

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Findings from Brattle Report Cited in Forbes Article on the Challenges of Decarbonization for Utilities https://www.brattle.com/insights-events/news/findings-from-brattle-report-cited-in-forbes-article-on-the-challenges-of-decarbonization-for-utilities/ Wed, 29 Mar 2023 17:02:20 +0000 https://www.brattle.com/?p=49830 The utilities powering the US’s electricity network are facing several challenges presented by decarbonization and electrification. In order to meet clean energy demands, the distribution grid may need to expand by 60% by 2030, according to the US Department of Energy. A recent Forbes article, “Can Utilities Rise to the Challenges Presented by Decarbonization?” cites […]

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The utilities powering the US’s electricity network are facing several challenges presented by decarbonization and electrification.

In order to meet clean energy demands, the distribution grid may need to expand by 60% by 2030, according to the US Department of Energy. A recent Forbes article, “Can Utilities Rise to the Challenges Presented by Decarbonization?” cites a 2019 Brattle report, noting that “distributed energy resources can alleviate some of that stress, meeting 20% of the peak load by 2030.”

The Brattle report, The National Potential for Load Flexibility: Value and Market Potential Through 2030, was authored by Principal Ryan Hledik, Principal Emeritus Dr. Ahmad Faruqui, Consultant John Higham, and former Senior Research Analyst Tony Lee.

View the Article

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US Offshore Wind Transmission: Policy and Regulatory Challenges https://www.brattle.com/insights-events/publications/us-offshore-wind-transmission-policy-and-regulatory-challenges/ Fri, 24 Mar 2023 13:28:43 +0000 https://www.brattle.com/?p=49806 View Presentation

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Anul Thapa Discusses New England’s Natural Gas Supply, Transmission, and Distribution System on the Alternative Power Plays Podcast https://www.brattle.com/insights-events/publications/anul-thapa-discusses-new-englands-natural-gas-supply-transmission-and-distribution-system-on-the-alternative-power-plays-podcast/ Thu, 23 Mar 2023 13:11:47 +0000 https://www.brattle.com/?p=49790 Brattle Principal Anul Thapa was featured on a recent episode of Alternative Power Plays, “Power Player – Anul Thapa.” Mr. Thapa joins Buchanan Ingersoll & Rooney attorneys John Povilaitis and Alan Seltzer to discuss New England’s natural gas supply, transmission, and distribution system and the challenges it faces during the winter. Mr. Thapa explains how […]

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Brattle Principal Anul Thapa was featured on a recent episode of Alternative Power Plays, “Power Player – Anul Thapa.”

Mr. Thapa joins Buchanan Ingersoll & Rooney attorneys John Povilaitis and Alan Seltzer to discuss New England’s natural gas supply, transmission, and distribution system and the challenges it faces during the winter. Mr. Thapa explains how high natural gas prices and the heavily utilized gas pipeline capacity into New England – which gets more than 50% of its electricity from natural gas-fired generation – impacts the region’s electric market and how the Russian invasion of Ukraine will impact the demand of liquid natural gas (LNG).

The Alternative Power Plays podcast series – co-hosted by experts from Buchanan and Brattle – focuses on the benefits and deployment of Combined Heat and Power (CHP). It features interviews with industry leaders in the CHP space and addresses the new ways companies are getting electricity and thermal energy to their facilities using CHP technology.

You can listen and subscribe to Alternative Power Plays below.

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Brattle Consultants Prepare Report Outlining Strategies and Policies Necessary for Massachusetts to Reach Net Zero Emissions in 2050 https://www.brattle.com/insights-events/publications/brattle-consultants-prepare-report-outlining-strategies-and-policies-necessary-for-massachusetts-to-reach-net-zero-emissions-in-2050/ Tue, 21 Mar 2023 13:43:38 +0000 https://www.brattle.com/?p=49781 The Commonwealth of Massachusetts, a recognized national leader in climate action, has set the ambitious goal to reach a statewide greenhouse gas (GHG) emissions limit of “Net Zero” by 2050. In a report recently published by the Baker-Polito Administration, Brattle consultants collaborated with the Massachusetts Executive Office of Energy and Environmental Affairs (EEA) and other […]

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The Commonwealth of Massachusetts, a recognized national leader in climate action, has set the ambitious goal to reach a statewide greenhouse gas (GHG) emissions limit of “Net Zero” by 2050. In a report recently published by the Baker-Polito Administration, Brattle consultants collaborated with the Massachusetts Executive Office of Energy and Environmental Affairs (EEA) and other state agencies to develop the strategies and policies necessary to achieve Net Zero in 2050. Reaching Net Zero requires 1) reducing GHG emissions by at least 85% relative to 1990 levels, and 2) offsetting any remaining emissions by removing GHGs from the atmosphere.

The Clean Energy and Climate Plan for 2050 (2050 CECP) builds upon existing climate mitigation and resiliency efforts, and includes public feedback and input from a wide range of stakeholders, including legislators, advocacy groups, utilities, industry, residents, and others. It depicts a decarbonized future where vehicles, home heating, and the electric grid can operate with minimal reliance on fossil fuels.

The 2050 CECP sets GHG sub-limits for different sectors of the economy – including transportation, buildings, electric power, and non-energy/industrial – and establishes strategies for each sector as well as for the state’s natural and working lands. The report also identifies a number of cross-sector strategies that will facilitate progress. Together, the technologies, infrastructure, and solutions highlighted in the plan are intended to:

  • Support a clean energy innovation
  • Transition our transportation and buildings by electrifying with clean electricity, and balancing the limited remaining GHG emissions with nature-based and engineered carbon sequestration approaches
  • Expand development of a green workforce
  • Emphasize a commitment to environmental justice for communities disproportionately impacted by historical energy systems and environmental effects
  • Ensure a successful, cost-effective economic transition to Net Zero

The Brattle team that worked with the EEA and other contributors to develop and produce the CECP 2050 includes Principal Dr. Dean Murphy, Senior Associates Dr. Long Lam and Josh Figueroa, and Associate Dr. Goksin Kavlak.

The full report, Clean Energy and Climate Plan for 2050, can be found below.

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