Clean Energy Quest Pits Google Against Utilities

Markets and Renewables

The big utilities in the Southeast are now building more solar projects, but those pushing for a market in the region say it’s not enough.

In the region, the proposed solar projects’ generating capacity is equivalent to just over a fourth of total capacity, which is far below the 80 percent for PJM, according to an analysis by Tyler Norris, a senior executive at Cypress Creek Renewables, a solar company, and a special adviser in the Energy Department during the Obama administration.

“Project developers are attracted to open wholesale electricity markets with price transparency, independent oversight and the ability to trade with multiple potential customers,” Mr. Norris said.

To show how markets can stoke the growth of renewables, supporters sometimes point to Texas, whose power market, ERCOT, is one of least regulated in the country. Last year, wind power accounted for nearly 23 percent of Texas’ generation, up from 8 percent in 2011.

Critics say the Texas market system led to much of the fragility that caused power outages during the winter storm that was responsible for over 200 deaths in 2021. But others note that ERCOT was structurally isolated from neighboring power markets, preventing it from drawing power from those areas when plants in the ERCOT market froze up in the storm.

In addition, some experts question the degree to which markets drive the growth of renewables, saying certain states’ geography and weather lend themselves to wind and solar power. With its vast and gusty unpopulated spaces, Texas is naturally set up for wind power.

Article source: https://www.nytimes.com/2022/12/20/business/google-clean-energy.html