SERVM

The Value of Resource Adequacy

Why reserve margins aren’t just about keeping the lights on.

While it’s theoretically possible to keep the lights on with a much smaller reserve than the U.S. utility industry historically has maintained, the costs of doing so might be higher than some analyses suggest. As demand response plays a growing role on the grid—and as system planners reconsider reserve margins and reliability standards—quantitative risk analysis will guide resource adequacy decisions.