Electricity Market Reform & Decentralized Energy: Showcasing the Value

Electricity Market Reform & Decentralized Energy: Showcasing the Value:

Microgrids could serve an important role in providing flexibility if the market provided that compensation is appropriate. They can provide demand response, storage and renewable energy to the grid. One of the most needed changes is real-time retail rates that reflect the true cost of electricity. This would make electric demand more responsive to price. Existing retail prices — generally fixed prices per kWh — are a big source of inefficiency and missed opportunities, he said. With real-time pricing and smart controls, smart appliances and smart electric vehicle charging, customers can use electricity when prices are low and use less when prices are high. “It’s a question of getting price signals right. Companies will come in and aggregate resources and provide them to the grid,” said Goggin. Such reforms could take place at the public utility commission level, at the state level and also at RTOs, said Kevin O’Rourke, interim executive director at Wind Solar Alliance. Stakeholders can get more involved at the RTO level, where there are often daily meetings to discuss rules and prices.