The plan aims to incentivize companies to be prepared to provide power when demand or supply unexpectedly shifts, a federal filing dated Jan. 29 shows. The New England grid increasingly relies more heavily on weather-dependent clean energy sources to power heating and transportation systems.
The plan, set to take effect in March 2025, will materially improve operating reserve resource readiness, efficiency, and day-ahead price formation in New England without undue increases in wholesale market costs, FERC said in the filing.
The day-ahead market lets participants commit to buy or sell wholesale electricity a day before the operating day.
To meet its climate goals while maintaining a reliable supply of electricity, New England will require large amounts of renewable sources alongside some traditional power resources and make drastic changes to its current power grid, a recent study by the grid operator found.
