Press Release Summary:
According to press release and study by American Public Power Association, growth of renewable energy projects in organized electricity markets is not related to market structure. In response, EPSA's president and CEO, John Shelk, stated that conclusions about renewable energy and organized electricity markets bear no relation to reality. Organized electricity markets provide ease of access to grid; clear market signals to encourage investment; and large land area to compensate for variability.
Original Press Release:
EPSA Statement on Renewable Energy in Organized Electricity Markets
WASHINGTON, D.C. - The Electric Power Supply Association (EPSA) today issued the following statement by John E. Shelk, president and CEO of EPSA, in response to a press release and study released on January 4 by the American Public Power Association that claims the robust growth of renewable energy projects in organized electricity markets is not related to market structure. EPSA's member companies are in the forefront of wind development. Shelk said:
"The faulty conclusions about renewable energy and organized electricity markets that were reached in this study bear as much relation to reality as the projections made by pollsters on New Hampshires presidential primary results. Both attempted to impose statistical analysis on more complicated human decisions and both widely missed their marks.
"The facts show that nearly 80 percent of today's wind generation is located in ISO and RTO markets, even though these markets only represent 53 percent of total energy demand and 44 percent of the nations wind potential. The American Wind Energy Association itself has stated that development has proven to be easier in areas with competitive wholesale electricity markets (click here for the AWEA statement). Theres a simple explanation for this phenomenon: organized electricity markets provide greater ease of access to the grid; clearer market signals to encourage investment; and a larger land area to compensate for variability.
"In light of the facts, it defies common sense for any serious researcher to claim there is no correlation between organized markets and the growth of renewable energy. Consumers deserve serious consideration and constructive proposals designed to address electricity market challenges, unfortunately this study delivers only fairy tales."