Moving Towards Decarbonization: Proposals for RTO and Market Development

On this episode of Know Power, Rob Gramlich discusses various aspects related to the renewable energy sector. He points out that residential rates in the Southeast are higher in four or five key states, and the idea that everything is working fine outside the RTOs is not true. Despite the Standard Market Design not working due to politics and lobbying, FERC nominees who would mandate RTOs are not favored by the Senate Energy Committee. Rob also emphasizes the need for a step-by-step approach towards a voluntary RTO development approach, citing SPP's successful model of operating the system and receiving 90% of their energy from renewables. The podcast highlights the importance of understanding rate pancaking in transitioning to cleaner, renewable resources, and the integration of utilities under a single RTO umbrella to create a more efficient pathway for moving power around the grid. He also discusses the potential for transmission infrastructure in different regions, both centralized and regional, and the need for renewables to support increased demands in load. The episode concludes with policymakers and Congress needing to encourage interregional transmission planning, which is a great investment with huge savings, and the idea of minimum transmission transfer being discussed by the President's negotiators.

Guest bio: Rob Gramlich is President of Grid Strategies LLC, a Washington DC-based consultancy focused on transmission and power markets for a reliable, affordable, and sustainable power system. He co-founded Americans for a Clean Energy Grid, Working for Advanced Transmission Technologies (WATT Coalition), Advancing Modern Powerlines, the Macro Grid Initiative, and the Future Power Markets Forum. Rob has been invited to testify by both parties before Congress, FERC, and state agencies. He has earned awards from FERC as Exemplar of Public Service, the Energy Systems Integration Group for contributions to market design and transmission planning, The Hill Magazine for lobbying, and the American Wind Energy Association for Technical Achievement.

Rob previously oversaw transmission and power market policy for the American Wind Energy Association as SVP and Interim CEO, served as Economic Advisor to FERC Chairman Pat Wood III, and was Senior Economist at PJM Interconnection.

Rob has a Master of Public Policy (MPP) degree from UC Berkeley and a BA with Honors in Economics from Colby College.

[00:02:49] Joining FERC in 1995, Rob played a role in restructuring the energy industry

[00:04:18] FERC embraced market-oriented policy, nationalized by Energy Policy Act, standardized electricity markets

[00:06:01] Markets have changed a lot in 20 years, but some regions are still behind

[00:10:07] Slow progress in Southeast, faster in West

[00:11:50] Renewables driving regionalization through RTO proposals

[00:18:31] California ISO proposes enhanced day ahead market (Edam), SPP offers Markets Plus

[00:22:54] Slow RTO development, step by step approach.

[00:26:02]  RTOs enable efficient power transfer, cost savings, and enhanced reliability

[00:29:44] Inter-regional transmission crucial for power reliability

[00:33:34] Transmission investment is crucial for a modern and robust grid, but funding remains a challenge

[00:37:06] Gates' initiatives and the Inflation Reduction Act provide incentives for transmission and renewable technologies

[00:41:17] Advocating for choice in clean energy markets

[00:44:34] Promoting competition, clean energy, and regional planning for a more efficient system

[00:47:54] Regional markets will expand with transmission growth

[00:52:32] Closing thoughts

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