viernes, octubre 27, 2006

My iPod is on the Demand Side

Reference: Where's My iPod? The Next Big Thing in T&D Automation

A breakthrough in electric power needs to start with a proper reform leading to a new paradigm - the End-State of the power industry. Such End-State I believe will come from a structure where there is a T&D transportation monopoly (controlled market) that is separate from retail marketing and generation (free market) activities.

The old paradigm – vertically integrated utility - was based on the development of the resources on the supply side. The new paradigm will be based on the development of the resources on the demand side, where the new iPod might also be found. Please take a look at the following comments:

This is what I said on October 2nd on Divorcing Electricity Sales from Profits Creates Win-Win for Utilities and Customers, referring to the Synthesis of Electricity Without Price Controls submitted to the IEEE Spectrum Editor on the article "Electric Idyll," by Phillip F. Schewe. See October 2006, issue.

“Electric power deregulation that separates transmission and distribution - the FERC way - is flawed, because that separation is not done at a modular interface. The interface isn't modular when most needed - when real time reserves are low - amplifying input fuel prices into output electricity prices, instead of mitigating them. True functional reform simply separates wires from the competitive activities of generation and retail, at modular interfaces with the wires. The resulting value chain of the competitive activities is wholesale, retail, customer. Supply side (watts and vars generation) and demand side (energy efficiency, demand response, distributed generation, and storage) resource adequacy responsibility should be kept by a planning (long run) and operating (short run) unit associated with the wires monopoly for the whole power system. The result is a robust, complete, and fully functional market of the competitive activities. Those are the control elements of true deregulation of electricity. That will be the electric idyll of the new era - the End-State of the electricity industry. European Union seems to be closer to that goal than the U.S. As a reference, please read "a Dominican strategy," in IEEE Power & Energy, May-June, 2006 and/or place vanderhorst-silverio at on a search engine.”

October 19th on A Blueprint for Avoiding Blackouts. A Blueprint for the Development of the Resources on the Demand Side can be found in my comments under the same article Divorcing Electricity Sales from Profits Creates Win-Win for Utilities and Customers. There is an urgent need to recognize that a complete and fully functional electricity market, based on a coherent reform is required, as I have been commenting on EnergyPulse since November 2005, when An Alternative Business Case for Demand Response was posted.