Utility Dive•28 days ago
DOE expands use of emergency orders amid winter freeze
Key Takeaway
The DOE's expanded use of emergency orders during winter freezes underscores increasing grid fragility and the regulatory prioritization of supply during extreme weather, signaling a critical need for resilient, dispatchable capacity.
AI Summary
- •The Department of Energy (DOE) issued emergency waivers to PJM Interconnection, New York ISO, and Duke Energy in response to a winter freeze, expanding on previous directives.
- •These waivers signal significant grid stress and the potential for temporary relaxation of operational or environmental regulations to ensure power supply during extreme weather events.
- •For developers, this highlights the critical market need for reliable, dispatchable generation capacity, particularly resilient to severe weather, which could influence future capacity market designs and project investment.
- •Large power consumers should recognize the increased risk of grid instability during extreme weather and the regulatory willingness to intervene to maintain supply, potentially impacting energy costs and reliability expectations.
Topics
capacity-marketfercpjmpolicytransmission