The Craig Station coal-burning power plant in Moffat County is pictured Feb. 27, 2020. Tri-State Generation plans to close the plant by 2030.
Hoping to lower wholesale electricity costs, increase price transparency, and mitigate congestion on the transmission system for participating markets, the Southwest Power Pool launched its Western Energy Imbalance Services market Monday morning.
Tri-State Generation and Transmission Association is one of several regional utilities are participating in the market.
The real-time balancing market is the latest of SPP’s contract-based Western Energy Services to be implemented in the Western Interconnection.
“This is an exciting step for SPP and our new market participants in the west. Our electricity markets have played a big role in lowering costs, integrating renewables and enhancing reliability in the east, and we’re excited to see a new part of the country begin to see similar benefits,” said SPP President and CEO Barbara Sugg. “
Dive Brief:
The WEIS has been in the works for more than a year, and SPP says many of the participants are now evaluating full membership in the SPP regional transmission organization (RTO). A Brattle study last year concluded adding members could produce $49 million in annual savings for consumers and SPP.
Utilities joining the WEIS say the new service will help accelerate their decarbonization goals. There are concerns from some clean energy advocates, however, that SPP s new market creates a transmission seam across Colorado and may not be as efficient as a single RTO serving the state.
Dive Insight:
The launch of SPP s new balancing market will help participating utilities supply cleaner, cheaper energy, but Colorado is now served by two grid authorities and it remains to be seen if this is the most efficient method, according to Amanda Ormond, managing director of Western Grid Group. The organization works to accelerate the integration of cost-effective, low-carbon res
Interstate grid operator Southwest Power Pool has expanded its wholesale energy market, the latest step in a series of nationwide moves aimed at bringing more efficiency to parts of the country rich in renewable energy potential but lacking in the energy trading regimes to make the best use of it.
Monday’s launch of SPP’s Western Energy Imbalance Service Market will bring real-time energy-balancing trading activity to eight utilities and transmission authorities across Colorado, Wyoming, Montana, South Dakota and Nebraska.
These regions have some of the best wind power resources in the country and are seeing a massive growth of wind farms to take advantage of it. But like other parts of the country with fast-growing renewables, they can struggle to integrate wind power into the bilateral arrangements they ve previously relied on to balance generation capacity with electricity demand across their interconnected transmission systems.