Measuring Resource Adequacy

Resource adequacy is of critical importance to all generators, regulators and consumers. The financial impact of shedding firm load in the electric energy market can be measured in the millions and billions of dollars. It is critical for your operation to have an accurate measure of resource adequacy for your financial health, to ensure NERC compliance and to continue to be a reliable electric generator for consumers and bulk distribution clients.

Firm Load Shed Events and Resource Adequacy

As a bulk electric power generator, you are responsible for measuring the resource adequacy or the ability of your electric system to meet all firm load obligations. If the demand for energy exceeds the generating capacity of the combined electric system, then customers will be without power, resulting in unplanned outages. This is a firm load shed event.

Firm load shed events are rare and in general represent a very small percentage of overall outages. Small distribution related outages occur several hours per year for most customers, most regions in the United States have not experienced a generation deficiency cause by firm load shed events in recent history.Resource

However, as demonstrated by the California Energy Crisis in the early 2000’s and the extreme summer weather in Texas during the summer of 2011, Firm Load Shed events as the result of a deficiency in resource supply adequacy can be financially and personally devastating.  After these events, it is clear that the value provided by reliable electric supply far exceeds the physical costs of producing adequate electricity.

Resource Planning and NERC

NERC and its related regional entities are the resource planners responsible for developing the long-term plans for the adequate resource supply of specific loads within their planning area. NERC oversees all of North America; while the regional entities regulate and plan for their designated geographic area. When planning and developing standards for the adequacy of resources, NERC and the regional entities will analyze the aggregate electrical demand and energy requirements of all customers within their service area, as well as the external energy sales to other regions.  They will also take into account scheduled and reasonably expected unscheduled outages, due to isolated weather and equipment failures. The resource planners will also calculate the Value of Lost Load (VOLL). Understanding VOLL in terms of resource adequacy can help electric power generators understand the cost of increasing capacity.

The Versify Solutions

Understanding your resource adequacy is critical to your entities success in the marketplace. To help bulk energy generators and suppliers make the most of their business, Versify Solutions offers a full suite of real-time analytical and management software solutions. Our software packages can help you make the critical asset related decisions you need, in real-time. To learn more, contact Versify Solutions today.