Open-access economics make stored energy something you can bank on. For natural gas and electric power.You can't store electricity, right?
The old shibboleth to some extent is literally true....
Western Area Power Administration
Source: California ISO; applications acknowledged through Nov. 26, 1997.
Sample SC Transaction
SO how can an SC make money in the California market? Here's a simplified example of an electricity purchase of one megawatt-hour, assuming a purchase price of $20/MWh plus associated costs, but not including an SC transaction fee. As shown below, an SC would have to sell the electricity for $22.53 just to break even. The spot price for peak-firm delivery at the California-Oregon border on Dec. 18 was $21.75 to $22.75 per MWh, as reported by Reuters.
SC's energy cost: $20.00 (estimated per MWh price)
SC's coordination fee: + 0.30 (SC's cost to execute transaction)
Grid management fee: + 0.73 (actual tariffed rate charged by ISO)
Congestion fee: + 0 (assuming no congestion)
Ancillary services fee: + 1.50 (varies by hour)
SC's final cost: $22.53 (per MWh)
Note: All figures are estimates except the grid management fee, which is the ISO's administrative fee approved by the California PUC. The SC's coordination fee was based on the PUC-approved 31-cent coordination fee the California PX will charge full-requirements customers to recover its costs. For non-full-requirements customers, the PX will charge between 15 cents and 37 cents per MWh, depending on load. For simplification, losses aren't included. - Elizabeth Striano, managing editor.
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