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Her complaint seems to be that the way Texas' system is structured penalizes excess capacity. "This article from GreenTech media praises energy only markets as
by mcguire 6y ago
Her complaint seems to be that the way Texas' system is structured penalizes excess capacity.
"This article from GreenTech media praises energy only markets as do many green interests. Capacity markets are characterized as wasteful. Andrew Barlow, Head of the PUC in Texas is quoted as follows, “Legislators have shown strong support for the energy-only market that has fueled the diversification of the state’s electricity generation fleet and yielded significant benefits for customers while making Texas the national leader in installed wind generation.” ... Rewarding resources for offering capacity advantages effectively penalizes renewables. ... The incentive for gas generation to do the right thing was taken away by Texas’s deliberate energy only market strategy."
As a result, no one pays for backup capacity: wind and solar can't (without electrical storage) and fossil fuel can't afford to have it since they have to compete with wind and solar.
This is the first I've heard about the cause of Texas' lack of capacity.