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On this episode of KnowPower, Rob Gramlich discusses various aspects related to the renewable energy sector. He points out that residential rates in the Southeast are higher in four or five key states, and the idea that everything is working fine outside the RTOs is not true. Despite the Standard Market Design not working due to politics and lobbying, FERC nominees who would mandate RTOs are not favored by the Senate Energy Committee. Rob also emphasizes the need for a step-by-step approach towards a voluntary RTO development approach, citing SPP's successful model of operating the system and receiving 90% of their energy from renewables. The podcast highlights the importance of understanding rate pancaking in transitioning to cleaner, renewable resources, and the integration of utilities under a single RTO umbrella to create a more efficient pathway for moving power around the grid. He also discusses the potential for transmission infrastructure in different regions, both centralized and regional, and the need for renewables to support increased demands in load. The episode concludes with policymakers and Congress needing to encourage interregional transmission planning, which is a great investment with huge savings, and the idea of minimum transmission transfer being discussed by the President's negotiators.
Guest bio: Rob Gramlich is Founder and President of Grid Strategies LLC where he provides economic policy analysis for clients on electric transmission and power markets in pursuit of low-cost de-carbonization. He serves as Executive Director of Americans for a Clean Energy Grid, Executive Director of the WATT Coalition, on the board of the Business Council for Sustainable Energy Foundation, on the Advisory Council for the Energy Systems Integration Group, on the Advisory Board of the National Regulatory Research Institute’s Regulatory Training Institute, and on the DOE “Beyond LCOE” External Advisory Board.
Rob oversaw transmission and power market policy for the American Wind Energy Association from 2005 through 2016 as Senior Vice President for Government and Public Affairs, Interim CEO, and Policy Director. He was Economic Advisor to FERC Chairman Pat Wood III from 2001 to 2005, Senior Economist at PJM Interconnection in 1999 and 2000, Senior Associate at PG&E National Energy Group in 2000-2001, and an analyst at the FERC Office of Economic Policy, ICF Resources, the World Resources Institute, and the Lawrence Berkeley National Laboratory in the 1990s. He has testified many times before the US Congress, US Federal Energy Regulatory Commission (FERC), and state regulatory commissions. He has served on advisory committees for the U.S. Department of Energy and the North American Energy Standards Board, on boards of a number of regional clean energy organizations, as Vice Chair of the Business Council for Sustainable Energy, and as Interim Executive Director of the Wind Energy Foundation (now Wind-Solar Alliance).
Rob has a Master of Public Policy (MPP) degree from UC Berkeley and a BA with Honors in Economics from Colby College.
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[00:02:49] Joining FERC in 1995, Rob played a role in restructuring the energy industry
[00:04:18] FERC embraced market-oriented policy, nationalized by Energy Policy Act, standardized electricity markets
[00:06:01] Markets have changed a lot in 20 years, but some regions are still behind
[00:10:07] Slow progress in Southeast, faster in West
[00:11:50] Renewables driving regionalization through RTO proposals
[00:18:31] California ISO proposes enhanced day ahead market (Edam), SPP offers Markets Plus
[00:22:54] Slow RTO development, step by step approach.
[00:26:02] RTOs enable efficient power transfer, cost savings, and enhanced reliability
[00:29:44] Inter-regional transmission crucial for power reliability
[00:33:34] Transmission investment is crucial for a modern and robust grid, but funding remains a challenge
[00:37:06] Gates' initiatives and the Inflation Reduction Act provide incentives for transmission and renewable technologies
[00:41:17] Advocating for choice in clean energy markets
[00:44:34] Promoting competition, clean energy, and regional planning for a more efficient system
[00:47:54] Regional markets will expand with transmission growth
[00:52:32] Closing thoughts
