The transition towards a clean power grid combined with extreme weather events attributable to climate change will add variability to future power market conditions.
The disruption caused by extreme weather events in power markets across North America in recent years should be a wake-up call for portfolio managers and planners.
In February 2021, Texas and the MidWest experienced massive disruptions in supply and extreme scarcity pricing from unprecedented outages on the thermal and renewable fleet with market prices exceeding $9,000/MWh.
In CAISO and the West, record-setting temperatures coupled with drought conditions and wildfires in August 2020 stressed the electric grid and resulted in rolling blackouts and large spot and forward market price volatility.
Portfolio and risk management decisions based on analyzing past behavior are no longer a safe guide as the future is not going to resemble the past or the present. A new paradigm is required to navigate through the new market dynamics. Resource planners, portfolio managers, developers, system planners and regulators need better models that account for uncertainty in a meaningful way, including extreme events.
Ascend Analytics experts will discuss best practices in decision analysis with uncertainty for forecasting, modeling, planning for, and managing extreme events.
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Extreme Events in Power Markets: Modeling, Planning and Management
workshop by filling in the form below.