GHG REGULATION FOSSIL-FIRED MARGINAL-COST IMPACTS: A DEMAND DURATION-BASED ANALYSIS

摘要

This issue of Greenhouse Gases (GHG) and energy policy has now progressed from conceptual design discussions to actual implementation of programs. Energy managers will have to provide advice, formulate plans and take action to maximize strength in the business operating environment. This paper examines California's new energy and GHG paradigm, which may serve as a proxy for other states and for federal policy. California's past, present and emerging regulatory framework will define the many aspects of business in both the western region and across the nation. Comparative analysis of pricing structures-in the context of demand duration-is helpful in raising questions and developing electricity wholesale market clearing price (MCP) impacts which will be largely influenced by the Renewable Portfolio Standard (RSP), the allowance trading price impacts for fossil-fired units, and the general impact of shifting some vehicular use from gasoline/diesel power to all-electric cars. Demand duration provides some indication of both system needs and pricing schedules. In the context of demand/load duration, a given generator can be assessed threefold: capacity factor (the ratio of the actual energy produced in a given period to the hypothetical maximum), dispatchability (the ability of a power plant to be quickly turned to a desired level of output) and availability (the percentage of time that a power plant is not down for maintenance and is able to operate). Historically, contracts varied by capacity payments and energy payments for dispatch and were written to ensure performance in accordance to these criteria.