Market Analysis & Homegrown Innovation

Grid modernization, electrification, and renewable penetration are rapidly becoming areas of focus for developers, power producers and utilities as market initiatives and federal incentives aim to establish a reliable, clean energy future . But getting there won’t happen overnight.

Monitoring and analyzing the existing grid and understanding the future of demand are two critical components that work hand-in-hand. These considerations need to be a top priority for power producers and utilities if they want to be prepared for future growth projections in clean energy resources such as solar, wind, energy storage, electric vehicles and even hydrogen.

The State of the Power and Renewable Market Analysis

Energy Market Modeling enables project developers and power producers to understand opportunities and risks for new resources. In an increasingly competitive environment, project sponsors are faced with physical (i.e., interconnection headroom) and economic (i.e., price forecasts) uncertainty.

Energy Market Modeling and analysis requires critical inputs for valid and accurate results. Such metrics include :

• Commodity forecasts
• Renewable profiles
• Generator operation characteristics
• Load growth

With the right innovative modeling, you can understand the limits and risks with a provided forecast to give your project and team a more complete and accurate picture.

How Energy Market Modeling Enables Future Energy Possibilities

Ongoing research helps adapt energy market models to assess renewable generation expansion. Multiple facets of energy load growth are causing developers and utility companies to seek long-term solutions in a short period of time.  Electrification initiatives such as conversion to electric heat and electric vehicles, penetration of intermittent resources and interregional transmission operations are making resource adequacy planning a higher and more complex priority.

There are many factors that go into developing new infrastructure that can meet ongoing grid demands and future projections. Regional markets and funding mechanisms can be diverse and difficult to navigate. Jurisdictional oversight and political climate are additional factors that can greatly impact the creation of regulatory structures and physical systems needed to enable a clean energy future. With a strategic team who is experienced in the markets, developers can find efficient pathways to economic project deployment.

Energy Market Modeling is a mechanism for locational knowledge and understanding for project development. It can benchmark traditional interconnection studies and enable users to more accurately understand the viability of their assets sited at specific locations on regional infrastructure.

Ulteig provides Locational Marginal Price (LMP) and curtailment forecasting, which allows developers to better understand a project’s ability to generate revenue and remain competitive and reliable.

“Market design specifically informs how resources will be leveraged by the grid operator to ensure reliability,” said John Fernandes, Ulteig’s Policy and Regulatory Director. “Market participation rules are becoming more complex and distinct to accommodate the penetration of emerging technologies such as energy storage, microgrids and distributed virtual power plants. By keeping abreast of these changing regulatory structures, Ulteig will maintain the precision of our own modeling while also helping our clients make strategic investment decisions on the most innovative platforms available.”

Innovative Solutions That Are Leading the Way

With an approach that takes regional factors and future projections into account, there are a variety of solutions that provide innovation and accuracy to the energy industry.

Plexos™ is a transparent solution engine that provides mathematical logic behind dispatch and commitment optimization. With robust stochastics, capacity expansion modeling and customizable inputs, Ulteig leverages Plexos™ in innovative ways to inform our Energy Market Modeling analysis and empower our clients with top-of-the-line information to aid in decision making.

“Energy Market Modeling provides critical information to renewable developers to help them understand the benefits and risks of their projects,” said Andrew Kramer, PhD, Energy Market Modeling Engineer at Ulteig. “Small distances between interconnection locations can make a world of difference in the profitability of a project. With the current competition for prime locations, developers should always desire to know where they will get the most bang for their buck. Given the capital investment associated with a renewable project and the risks surrounding Power Purchase Agreements (PPAs), why not receive the clarity and peace of mind knowing due diligence has been conducted on a potential site?”

Ulteig’s internationally recognized subject matter experts within the energy field can provide long-term solutions through a localized, innovative approach to enable reliable grid capabilities in a variety of markets.

LMPs and curtailment risk projected by Ulteig can provide clarity to understand how a client’s generator will operate in the marketplace and can enable opportunities for PPAs. With a strong understanding of varying power market differentiators throughout many regions in North America, Ulteig brings demonstrated experience to enable the future of advanced project development and grid resilience.

Innovation with partners like Ulteig equips power producers and project developers with effective market analysis capabilities, regional footholds and the strength of a national firm with world-class resources and expertise.

Let Ulteig be your partner to ensure your project receives the innovative and robust analysis needed to help on its journey to success. Learn more about our Energy Market Modeling capabilities and experts.