Advanced Energy United Reports

Policymakers, utilities, and other stakeholders in the West are considering proposals to develop and expand broader regional wholesale market constructs. Electricity planning and resource procurement in the West is currently spread across 38 separate balancing authorities.

This is in contrast with several other regions of the country, where utilities and balancing authorities have joined together to rely on a single entity to ensure reliable operation of the grid, share resources over a broader geographic area, and use competition to drive efficient market operations.

On Oct. 30, 2019, AEE's General Counsel and Managing Director Jeff Dennis testified before the U.S. House of Representatives Committee on Energy and Commerce Energy Subcommittee.

His submitted written and oral testimony summarizes the challenges facing advanced energy technologies to compete based on price and performance, and highlights opportunities for lawmakers and regulators to remove market barriers. 

Wholesale markets have delivered unquestioned benefits for consumers, including improved reliability, lower electricity prices, and improved access for new entrants and technologies.

In 2019, 200 million Americans live in states and regions served by organized wholesale electricity markets where more than $120 billion in energy transactions occur annually in these competitive markets.  Recognizing the benefits advanced energy offers in these markets, AEE has long advocated for technology-neutral markets that allow all resources to compete based on price and performance.

This white paper outlines five case studies of participation in both retail and wholesale markets by a range of distributed energy resources (DERs), exploring business models in use across the country today, and explaining how market rules have limited opportunities for participation.