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Flexibility, Not Resilience, Is the Key to Wholesale Electricity Market Reform

October 31, 2017

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U.S. electricity markets face scrutiny over revenue problems and reliability concerns as greater amounts of renewable energy come on-line.

This scrutiny has intensified after the Department of Energy’s proposal to compensate coal and nuclear power plants with 90 days of fuel on site. But coal and nuclear subsidies to boost “resilience” miss the main challenge facing wholesale markets — the need for grid flexibility.

Flexibility, not fuel on-hand, is at the core of what it means for a grid to be reliable or resilient.

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