lunes, abril 21, 2008

A Decent Response to Jim Bayer

Jim wrote, “… sorry I brought the whole [IMEUC] thing up,” when he wrote earlier “I do believe that IMEUC has something to offer in this discussion. And frankly, having large utilities decide how smart grids should be organized is akin the the fox watching the chickens… However, that being said, and given the potentially great interest in IMEUC, I really think it needs to be documented a bit better. I've read your 2 articles over many times and while I get the gist of it, the explanation is really not as clear as I'd prefer. Is there any new revised explanation in the works? Have you written anything else about it, other than the blogs?” He actually didn’t mention EWPC at all, so I don’t understand why he no polite with respect to EWPC, while being very polite with IMEUC. In the next post I will refer him and all readers to three very succinct EWPC articles, which speak very well of the EWPC market architecture and control paradigm, a very complex subject trully simplified.

Maybe “IMEUC has something to offer in this discussion ... ” but it is NOT as a market architecture and design paradigm. It is only for that reason that I have interacted by using the EWPC article IMEUC False Facts as a recipient of very insidious False Facts against EWPC. In fact, after hundred, and hundred, IMEUC False Facts, diffused in many directions by IMEUC promoters, since the end of 2005, to distract the attention of readers away from EWPC, I have documented 29 False Facts in the past three weeks (that is about 10 a week as a possible representative statistic). A quote from George Santayana is the perfect message that says it all: "Fanatism consists of redoubling your efforts when you have forgotten your aim."

I started the ideas of what in now EWPC in 1996 following the aims of late M.I.T. professor Fred Charles Schweppe (please hit the hyperlink get to his bio as an M.I.T. EECS Great Educator) and his research team (work done from 1978 to 1988). The aim is best taken from Schweppe's just mentioned bio, which says that he “… is now regarded as one of the visionary people who foresaw changes to the electric-power industry to permit competition, long before others.” I have found and documented, in the Central Energy Network, since the end of 2005, that the problems with deregulation and the continued value destruction by today's utilities, were and are, respectively, the result of disregarding his spot price regulated energy marketplace as the first required step. Schweppes’s visionary leadership on Spot Pricing of Electricity is the basis for the EWPC market architecture and design leadership.

Competition in the power industry requires a shift from today's utility business model of winning rate cases to the regulators with monopoly Utilities Enterprise Solutions to competitive Retailers' Enterprise Solutions to develop vibrant, complete, open, and fully functional wholesale and retail markets in the global economy.

Very sharp descriptions of EWPC can be found in the EWPC articles Synthesis Proposal Agreement of EWPC (in response to a similar question to yours, which I named Todd’s Test; there was not an IMEUC response at the time), Power Markets Essential Requirements and EWPC Leadership (w/o links).

Add to those three articles that, looking at the EWPC restructuring from the interface point of view, “EWPC is an integral reform paradigm that results is a robust emergent market architecture and design that divides the vertically integrated utility at modular interfaces, with two modules in the controlled market and three modules on the open market. 1) Long run and short run system planning, operation and control natural monopoly functions are also kept integrated. 2) The T&D wires natural transport monopoly is kept integrated. 3) Supply - generation - natural competitive functions compete with each other 4) Demand - retail - natural competitive functions compete with each other. 5) Supply and demand (Megawatt/vars vs Negawatt/vars) compete with each other. All competition is in time and space.”

Since I am now writing, the first draft of the introductory chapter of The EWPC Textbook, I know there are minor upgrades needed from insights that have evolved after I wrote them. Any comment in the third level win/win mode of communication about EWPC, but unrelated to the second phase of company vs. company competition, is welcomed.

Reference article and context: Building Models for the Smart Grid Business Case, by Jagoron Mukherjee, Senior Consultant, KEMA

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