domingo, enero 06, 2008

A Global Standard Market Architecture and Design

One of the BRIC countries (Brazil, Russia, India or China) is poised to be the enabler of a global Standard Market Architecture and Design, if U.S. companies decide to stay behind by keeping in place several inefficient statewide incremental extensions of the Vertically Integrated Utilities paradigm, none of which is able to become a U.S. standard, let alone a global standard. The EWPC standard will enable important global economies of scale.

A Global Standard Market Architecture and Design

By José Antonio Vanderhorst-Silverio, Ph.D.
Systemic Consultant: Electricity

Copyright © 2007 José Antonio Vanderhorst-Silverio. All rights reserved. No part of this article may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying and recording, without written permission from José Antonio Vanderhorst-Silverio. This article is an unedited, an uncorrected, draft material of The EWPC Textbook. Please write to to contact the author for any kind of engagement.

The last two comments that I posted, yesterday under the post Oil Prices Torching from Marty Rosenberg, which is a good introduction to the second which I posted today under the reference cited below. A development of the optimal mix of resources that satisfy the needs of end-customers, will come from the demand side and from the supply side.

While developed countries will have initially very high percentages of resources from the supply side, developing countries will be able for the first time to provide commercial quality reliable service (almost no unintended blackouts) with lower percentages of resources from the supply side, as EWPC becomes a global Standard Market Architecture and Design.

Marty’s article concludes with “…BIG NEWS with huge implications for consumers, the energy industry, the American and world economy, global politics, global terrorism... You name it. So when you read about high oil prices, don't agonize. It may be just the birth pangs of a much better world. And a new era of human enterprise,” as he wrote. This is my first comment:

Hello Mr. Rosenberg,

Happy New Year,

The key sentence on the quotes of Arthur Kressner, director fo R&D for Consolidated Edison, is "If properly integrated with the grid, we could do this in a very effective manner benefiting the environment, consumer and the company." Readers are advised to take a look at the EWPC article Demand Integration is NOT the Province of Politics (please the link … to read it).

Under EWPC the utilities become just wires only T&D transportation utilities under an obligation to transport at ultraquality. Centralized and distributed resources should go to the open market with competition at wholesale and retail. The integration of demand should be done through a new institution that I call Second Generation Retailers. For more information, please go to the EWPC Blog . . .

The second comment says:

Dear Don,

California and other states of the U.S. seem to have foregone a great opportunity by locking in their power sectors in an increasingly inefficient development path. Other states that are in a wait and see attitude should consider EWPC, as an emergent worldwide standard market architecture and design.

The reality that FERC SMD ended in failure can't be taken as an assumption that a single worldwide standard is impossible. Important economies of scale are the best incentives that the standard will provide.

If just one BRIC country undertakes the development of EWPC, it will extend very fast towards many other developing countries under reinforcing feedback. The resulting convergence will comeback to find states and countries and their companies locked with non-compatible rules losing business later on in the game.

¡El que ríe último, ríe mejor!

Best regards,

José Antonio

Reference and context of the second post: Grooming Wind, by Ken Silverstein, Editor-in-Chief, EnergyBiz Insider.