Drew Gray

Capacity market prices for energy in PJM surged, signaling a crucial demand for additional generation. PJM Interconnection's footprint is set to allocate $14.7 billion for capacity in the 2025/26 delivery year, a substantial rise from $2.2 billion in the previous auction. Stay informed about the energy sector's evolving landscape: [Link to the article] #EnergyMarket #CapacityAuction #PJMInterconnection

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Unveiling the Magic: How Delta Transformer Windings Balance Electrical Loads This is something that you hear a lot of times but rarely does anyone explain it: "deltas help redistribute load" or the corollary "deltas help balance the voltages." They do, and I'll get to that. First, let's just go over a transformer that does neither of these two things: the Wye-grounded-Wye-grounded transformer. The phase-to-neutral windings on a Wye-Wye transformer are paired directly between the primary and secondary. This means that if you have a single-phase to neutral load, the current that it draws will be reflected directly to the primary side, and assuming the transformer is grounded, the other two phases will be unbothered by what is done on one phase. This is a benefit that is often desired when there is a lot of load imbalance, as it allows a large single-phase load not to affect the voltages of the other two phases. This also means that any load imbalance on the secondary side will be reflected on the primary side, which could cause problems and need to be mitigated. The Wye-Wye configuration allows for unbalanced loads to exist without causing voltage issues due to its grounded wye, which presumably will be connected to a ground source. How is a Delta Winding Different? The part that makes a delta's response to load imbalance different is that the windings are in a closed loop, and this allows current to circulate in the delta. For example, let's say that you have a zero-phase-shift delta-delta transformer with windings that we will call ABH, BCH, and CAH on the primary and ABX, BCX, and CAX on the secondary. If you had a load on the ABX winding, the current that passes will induce a voltage that causes current through the windings BCX and CAX because it is a closed loop. These currents through these windings will cause currents to flow in the primary windings, BCH, and CAH. Currents that were just passing through one winding in the secondary are causing currents from winding voltage in the other phase-to-phase windings. This causes a circulating current in the secondary delta that causes a circulating current in the primary delta and helps redistribute the load more evenly. A delta-wye would do the same thing as this delta-delta did on redistributing the loads more evenly on the delta side. It doesn't have to be a delta-delta transformer. From this, it is easy to see why a Wye-grounded winding is great if you don't want individual loads to affect the other voltages due to imbalance or don't care about how unbalanced the load is. The other side is having a delta, which helps redistribute the load current more evenly on the primary side and likely maintain more similar voltages due to more even voltage drops on the primary side. #utilities #renewables #energystorage #electricalengineering #transformers

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PJM has identified the need for changes to its operating reserve markets because: > PJM’s existing reserve markets were designed primarily to manage risk associated with large unit loss > PJM’s existing reserve markets do not align with operational needs and reliability actions today, and this is discrepancy will grow moving forward > Flexibility needs will be increasingly driven by forecast uncertainty, and reserve markets will need to be more dynamic and probabilistic  > Enhancements are needed to PJM’s reserve markets to ensure reliability through the energy transition Kinda ryhmes with our experience in Alberta, so there may be some good learning here for us as we progress through our energy and reserve market redesigns... PJM Reserve Market Enhancements: https://lnkd.in/ggm3SbER

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Can the Midwest #electricity grid operate reliably without #naturalgas and coal, resources long seen as the bedrock of the Midwest grid? Yes, according to the Natural Resources Defense Council (NRDC) And the solution is #batteryenergystorage https://lnkd.in/eP8KB-bB

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Interregional transmission can provide many benefits -- yet power markets and grid operating practices are not set up to fully capture these benefits. This new report by the National Renewable Energy Laboratory for the DOE Grid Deployment Office lays out the barriers that need to be addressed to realize the full value of existing and new interregional transmission: https://lnkd.in/ekzximcU One of the necessary steps to improve seams-related inefficiencies is "intertie optimization," which we addressed here: https://lnkd.in/ew3QtcpQ and here: https://lnkd.in/dptXMG3t Great work by Christina Simeone, PhD and Amy Rose! #gridmodernization

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The U.S. Department of Energy (DOE) continues its investment in improving the nations interconnection process with a focus on advancing AI technology in the space. GridUnity looks forward to being a part of this important initiative.

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“There is danger of a backlash to the energy transition if it drives up costs for consumers.”-Sense CEO Mike Phillips To really nail load forecasting and keep costs in check, there needs to be better grid visibility. When utilities can see what’s happening right at the edge, they can predict demand more accurately and better manage energy distribution. This means lower costs and a more reliable energy supply. 💡 Small shifts like this can make a huge difference in how we power the future. What do you think about expanding grid visibility? #GridEdge #GridReliability #CostControl #LoadForecast

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The reliability and economics of wind energy

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Does PJM give a signal to build anything other than short term sources - intermittent wind or solar backed up by batteries or natural gas? The capacity market would need to be 40 yrs or more to cover long lived assets like nuclear (a 40 to 80yr asset) or hydro (similar long lived asset) if it isn’t already built. This same market forced the shutdown of TMI one of the best running nuclear plants in the world.

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This article discussion flies in the face of the market PJM has created. A market that only supports short term assets like wind and solar backed up by gas or batteries. In short it confirms the market flaws that have been claimed by utilities over many years, and should encourage support for creating market signals to create long lived assets like baseload generation plants.

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Demand Response: A Key to Reducing Peak Load Pressure on Utilities Demand response is not a new topic and keeps getting rebranded as something else every few years. The basic idea behind Demand Response is that the utility, when needed, sheds load that volunteered into the program when it makes financial sense or for reliability reasons. Usually, it is more the former than the latter. Shedding load is usually the last-ditch thing that a utility wants to do, but if someone is part of a Demand Response program, they are volunteering to be a front-line solution. What are some reasons for utilities to want Demand Response load? The first is just that as generation is dispatched, it generally is dispatched from the cheapest megawatt to the most expensive megawatt. This can be related to the efficiency of a unit. For example, an old coal plant might not be as efficient as newer plants at turning water into steam, and that might be a reason it is dispatched only during peaks. Often, peaker generation is not just old units but gas turbine generators. These units are in the 60-80 MW range. These units are half as efficient as combined cycle gas generation plants, which are in the 1000 MW range but are built explicitly to serve peaking loads with having a lot of unused capacity. The cost for peaking generation is very expensive, not only due to units being dispatched from cheapest to most expensive megawatt but mainly due to low utilization rates. There are fixed costs associated with just having and maintaining generation. On base units, units that run 90%+ of the time, these fixed costs are spread out over a large number of hours so fuel cost tends to be more of a driver for cost per MWh. With peaker units, their utilization might be seasonal or just a few weeks a year. This drives up run costs because fixed expenses are spread over only a few hours a year. To give you an idea of the difference, inside ERCOT, it is normal for electrical prices to be around $20-30 per MWh. During system peaks, electrical prices can spike above $1000 per MWh. These high prices are necessary to pay for the peaker units and incentivize people to build peaker generation. Inside of ERCOT, there has been a problem with getting generator companies to build additional peaker generation and the market cap kept getting raised to $9,000 per MWh to try to incentivize people to build more generation. It was lowered after the 2021 Texas Blackout to $5,000 per MWh. The cap is in place to prevent market manipulation as was done by Enron. The second reason why utilities like demand response load is for reliability reasons. Occasionally, the grid starts running short on capacity, usually on a hot summer day, and shedding load would help keep the grid from potentially having brownouts. Market prices for unregulated regions would spike, too, during these shortages, so it often isn't just the only reason. #electricalengineering #utilities #renewables #energystorage #substations

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The EIA data browser is a cool tool for reviewing electricity statistics - used the tool to pull this figure looking at monthly retail electricity rates for a handful of states and the US from Jan 2001 to October 2024. The figure is indexed to the Jan 2001 value with the change in price relative to that starting point. https://lnkd.in/eT3Y6BYp

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Inflation in energy costs (gas and electricity) is very prevalent globally. Most utility "innovations" call for rate hikes. Regulators need to introspect on innovations that lead to actual lowering of rates. In undergrounding, we offer one such cost lowering solution www.biosirus.com

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Interesting read on near term electricity reliability planning - growth of intermittent capacity; asset shifts; growing cyber-threats; sector-coupling gas & grid; inter-regional capacity markets and demand growth. A lot to digest. In my view, district energy systems fit perfectly in the mix to support cities, communities and campuses as the energy transition unfolds. https://lnkd.in/eFQr9uGs

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ICYMI, last week, PJM Interconnection, the electric grid operator, released its latest paper in its series on the energy transition. The paper does a terrific job of describing three scenarios and shows how state policy and corporate  decarbonization are absolutely achievable, albeit with big warning signs that could come along the way if new generation and transmission infrastructure don’t materialize. Highlights- 1️⃣ Dispatchable generation is needed less often, but is still critical to balancing the grid. The ramp is real. One scenario indicates 105 GW of ramp in 3 hours. How PJM will compensate and attract resources capable of that ramp on a reliable, day-to-day basis is key. 2️⃣ Longer duration storage solutions may be needed beyond the standard 4 hours today. Loss of load risk is concentrated across ~5 hours in the study, but 10 hour+ storage may be needed. This study was completed with old assumptions that have since shown risk is further extended in winter. 3️⃣ Neighboring regions will increasingly depend on each other. One scenario expects 35% more interchange of electrons between PJM and MISO. Look to Order 1920 implementation for building sufficient transmission to do that. Looking ahead, I’d like to see PJM release a report like this that leverages its latest resource adequacy reforms. My gut is the shift to marginal ELCC, inclusion of a longer weather history and other changes will give a more accurate picture of the likely future where 4-hour storage is useful, but not sufficient. Mainspring Energy’s dispatchable linear generator is capable of running on natural gas today and is also 100% hydrogen-ready. Our tech keeps the lights on and fits into the decarbonization pathways that many states in the region require. PJM Interconnection Mainspring Energy #reliability #FERC #decarbonization #LDES https://lnkd.in/eFSN_z8C

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Realizing this is a snapshot in time but why do utilities and consumers have to deal with the rollercoaster. Look at all the news the past couple of weeks when the stock market went up and down a few times. They call it volatility. It makes people nervous and stressed. If there is one thing we as an energy industry need is stability in energy prices. Yes, wind and solar have caused the volatility with their intermittent and low capacity factor but we need the wind and solar too. What is truly needed is a market that values base load generation for what it does to ensure reliability and avoid the volatility like this. If base load generation is valued properly we would see more utilities and developers investing in the right resources for the grid which is a balanced approach (all of the above).

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PJM Capacity Auction results. Prices go nuts !! Grid operators face significant challenges when integrating renewable energy sources (RES) into electric grids. Many grids lack the physical capacity to accommodate supply and demand connections. This is due to difficulties in optimizing grid capacity, which was originally designed for centralized fossil fuel generation. Inefficient grid planning leads to less new RES capacity being built than needed so prices soar.

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Starting your 2025 sales plan for major overhead and underground HV and EHV transmission projects? Look here, but remember routing and permitting lead times for some of these projects have been over 10 years. We need better policy and technical solutions to expedite the build out. Federal policies break down quickly on a state by state and local basis. We engineers should offer solutions built around technologies like underground, super conductors, advanced (composite core) conductors , DLR, rigorous FERC 881 compliance and compact designs (like BOLD). More capacity from existing rights-of-way is a megatrend and the solution for our immediate transmission needs. Do you agree? Thanks. Mike #pdi2 #innovation #transmission

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