Trump Admin Proposes The Biggest Change To US Electric Grid In Decades 

Posted: September 30, 2017 by oldbrew in Energy, government, News, Nuclear power
Tags: , , ,

Chances are this will go down like a lead balloon with intermittent renewable energy suppliers, who are used to having electricity supply rules working to their own advantage.

Energy Secretary Rick Perry is asking the federal agency that oversees the U.S. grid to issue a new rule to restructure electricity markets to fully compensate power plants for the reliability they provide, writes Michael Bastasch at Climate Change Dispatch.

Perry sent his policy proposal to the Federal Energy Regulatory Commission (FERC) on Friday. The letter asks FERC to create an electricity pricing regime that allows power plants to recover the costs of providing baseload power. It will likely be seen as a lifeline to coal and nuclear power plants.

“A diverse mix of power generation resources, including those with on-site reserves, is essential to the reliable delivery of electricity—particularly in times of supply stress such as recent natural disasters,” Perry said in a statement.

“My proposal will strengthen American energy security by ensuring adequate reserve resource supply and I look forward to the Commission acting swiftly on it,” Perry said.

Hundreds of coal-fired generators have shut down in the past few years and much more are slated to close in the near future. Energy analysts say cheap natural gas prices, coupled with environmental regulations, have encouraged utilities to move away from coal and nuclear energy.

The rapid pace of coal plant closures has sparked some concerns over grid reliability, especially in light of the growing reliance on wind and solar power — both of which are variable energy sources.

Perry’s rule asks FERC to allow power plants that improve grid reliability to recoup costs for things like, “reliable capacity, resilient generation, frequency and voltage support” and “on-site fuel inventory,” according to the policy proposal.

Continued here.

  1. richard verney says:

    Good news for Americans.

    Don’t forget that Obama’s policy was to make electricity prices sky rocket. See

  2. In this country we need to give priority grid access to “reliable capacity, resilient generation, frequency and voltage support and on-site fuel inventory”, not to weather-dependent unreliables. Unfortunately, with today’s politicians, we aren’t going to see a return to sanity.

  3. oldbrew says:

    Compare the Trump-US way and the South Australia way. One leads to very high prices and power cuts, the other one is the Trump way.

    The UK is heading the SA way so far 😦

  4. Curious George says:

    Would this apply to California?

  5. TA says:

    I love it!

    I notice several windmill companies have started advertising on Television over the last few months. I never say them advertising until recently.

    The Windmill people must be getting nervous, and even more so with Trump’s new rule.

  6. oldbrew says:

    George: The word ‘California’ is not in the 19-page proposal (see link below).

    Department of Energy
    Secretary Perry Urges FERC to Take Swift Action to Address Threats to Grid Resiliency

    SEPTEMBER 29, 2017

  7. Stephen Richards says:

    Bloody hell. Common sense has broken out among western politicians. Whatever next.

  8. oldbrew says:

    Drax calls for clarity over future of ancillary services

    Head of power says uncertain revenues putting large gas plants at a disadvantage
    . . .
    Drax has called for greater clarity over the future of the ancillary services to ensure the smooth operation of the power grid as more intermittent renewables come online.

    The firm says large gas plants will have a vital role to play in maintaining system stability but have been starved of investment due to a lack of visibility over potential revenues.

    Sounds like the same issue as the US proposal.
    ‘Lack of visibility’ sounds like code for ‘show us the money’ 😐

  9. BoyfromTottenham says:

    Tell Drax if they want to burn wood pellets instead of coal, they can have their wood pellets (but not from the USA).

  10. oldbrew says:

    Drax starts planning process for battery storage and gas options on site
    13th September 2017

    Drax plans world’s largest battery storage facility

  11. p.g.sharrow says:

    Paying producers for dependability! Who could have thought up such an Idea?
    Actually that was the way it was commonly done 40 years ago. Wisdom may once again prevail in American leadership. The World may once again get to see the benefit of choosing wise leadership rather then feel good Liberal thinkers that promise Rainbows and the Big Rock Candy Mountain…pg

  12. BoyfromTottenham says:

    Pg, a pity most voters don’t understand that nobody in their right mind would buy the unreliable, non-dispatchable output of wind and solar ‘generators’ if they weren’t forced to by legislation, or encouraged to by massive subsidy. And the governments that designed this schemozzle have the hide to call them ‘market-based’ solutions. Whither democracy?

  13. oldbrew says:

    Pay subsidies, distort the market and create problems. Then pay more subsidies to try and fix them.

  14. J Martin says:

    Will “dependability” include ability to resist an EMP event or attack by North Korea ? Could the US still pump water to its population after an EMP ? Will any backup generators fail to start ?

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