The costs and benefits of renewables

electricity industry | RossBaldick.comWhat are the costs and benefits of renewables? Focusing on the German Energywiende and similar efforts in California and Minnesota, that’s one of the questions my colleagues and I at UT (McCombs School of Business, LBJ School of Public Affairs, School of Law, and Cockrell School of Engineering) asked at the recent Fifth Annual Electricity Conference, hosted here in Austin. This year’s theme: “The Nexus of Markets and the Environment.”

Christoph Weber (University of Duisburg-Essen) provided a critical analysis of the German Energywiende in his keynote, highlighting the unsustainable expenditures incurred by Germany in its pursuit of low-carbon electricity production.

My panel considered the integration of distributed renewable energy resources, critically examining the idea of a distribution system operator, which has been advocated by former FERC Chairman Jon Wellinghoff, among others.

The third panel analyzed EPA rules, and the final panel considered the experience in Mexico, currently moving towards a competitive generation market.

Click here for copies of the panel presentations.

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New and improved! Intro to Electric Power video course

intro to electric power logo final“Introduction to Electric Power,” Dr. Baldick’s most popular course with attorneys and regulators across the country, is now updated and available on video!

No traveling, no missed days of work. You get the same course — all the same materials and lectures. And you can view it at your own pace, wherever and whenever is most convenient.

This video course equips non-technical professionals such as lawyers and regulators to understand and discuss technical issues in the electricity industry. Emphasis is placed on organized wholesale markets. You’ll learn the fundamentals of electric power generation and transmission. And you’ll learn:

  • how market outcomes are determined
  • strategies to navigate the complexities of the industry
  • best ways to identify and protect client interests
  • technical know-how to write better contracts
  • how to avoid costly mis-communication with technical professional

“An invaluable course. It has proven its worth many times over. As someone on the front line of the electricity wars, I wouldn’t enter the field of battle without it.”

For more details, click here.

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Flexible thermal resources to balance renewable production

logo-novemberdecember-2014In the current IEEE Power & Energy Magazine, (“Flexibility and Availability,” November/December 2014, p. 104), I discuss the future need for increased use of flexible thermal resources to help balance renewable production.

Natural gas-fired generation has a special role because of its inherent flexibility and its relatively low emissions. Natural gas markets have provided for coping with the variable needs for gas consumption that can be predicted on a day-ahead basis. With increasing renewables, however, there is increased uncertainty into the operating day and there will be a correspondingly greater need to adjust natural gas consumption with less warning.

Natural gas and electricity markets will become more tightly coupled, and various incompatibilities between these markets will need to be resolved. Perhaps the biggest difference in the markets is that electricity trading is a 24/7 activity, whereas gas trading has traditionally taken place during “banker’s hours.” Increasing needs for flexible trading will necessitate a liquid seven-day-a-week gas trading marketplace.

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