Independent System Operators and Biomass Power

    Research output: Contribution to conferencePaper


    Since the Federal Energy Regulatory Commission issued its landmark open access transmission rule in 1996, the idea of creating and establishing independent system operators (ISOs) has gained momentum. ISOs may help combine individual utility transmission systems into more regional tramsmission networks, which ultimately will allow biomass companies to transmit power over longer distances whilepaying a single transmission rate. To the extent that ISOs are combined or operated with power exchanges, however, biomass companies will likely face even more competitive market pressures. Few operators have experience with ISOs and power exchanges, but preliminary results show that short-term electricity market prices are probably too low for most biomass companies to compete against. Withoutpolicy measures, biomass companies may have to pursue strategic opportunities with short-term, spot-market sales; direct bilateral sales to customers; alternative power exchanges; and perhaps a 'green' power market and sales to ancillary service markets. In addition, prices will likely be more volatile in a restructured market so biomass generators should be selling during those times.
    Original languageAmerican English
    Number of pages11
    StatePublished - 1999
    EventBioenergy '98 - Madison, Wisconsin
    Duration: 4 Oct 19988 Oct 1998


    ConferenceBioenergy '98
    CityMadison, Wisconsin

    NREL Publication Number

    • NREL/CP-620-25099


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