NEWS: Energy and environmental policy
E3 Introduces New Framework to Apply ELCC Metric in Resource Adequacy

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August 17, 2020

Solar panels, wind farms, and battery storage

A new whitepaper by E3 proposes a practical application of effective load carrying capability (“ELCC”) in resource adequacy.

Policy and economics are driving a transition toward low-carbon electricity systems that will be powered increasingly by intermittent renewable resources (wind, solar) and energy-limited resources (storage, demand response). In the administration of resource adequacy, the industry has increasingly turned to ELCC as the preferred method for measuring the capacity contribution of these non-firm resources. Proper use of this metric is critical to ensuring both reliability and economic efficiency in both regulated and deregulated markets. A new whitepaper published by E3 identifies and discusses various challenges and considerations that naturally arise with increased reliance on ELCC in resource adequacy programs, namely complex interactions between resources, and proposes a framework for the effective incorporation of ELCC into centralized capacity markets that is durable as non-firm resources evolves towards a preponderant share of electricity generation.

The whitepaper is available for download here.

filed under: Energy and environmental policy


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