New Grid Reliability Solution Responds to Intermittency of Renewables
Renewable energy sources that are dependent on changing weather patterns present uncertainty in forecasting the needs of the electric grid. The Dynamic Reserves framework the NYISO is pioneering aims to address that, by strengthening grid reliability and ensuring a more efficient, responsive electricity market.
Currently, the grid relies on fixed amounts of backup power to cover potential issues like a generator failure or a transmission outage. However, as renewable energy sources like wind and solar become more common, their output can fluctuate due to changing weather conditions. These variables make it harder to predict exactly how much reserve power is needed.
The Dynamic Reserves approach tackles this problem by continuously monitoring the grid in real-time and adjusting the amount of reserve electricity purchased based on the most significant risks at any given moment. This ensures that there is always enough backup power to keep the system stable, even if renewable energy production drops suddenly.
Another key benefit of this new system is that it gives energy suppliers stronger incentives to be flexible and respond quickly to changing conditions. It also sends price signals to suppliers that better align with the true cost of maintaining grid reliability, and results in less volatility for consumers.
NYISO’s Dynamic Reserves proposal has already received strong support from stakeholders and will be submitted to federal regulators later this year. Pending acceptance, the NYISO anticipates implementing the first-of-its-kind dynamic reserve framework in 2027.