California's Power Market Implements Bid Cost Recovery for Energy Storage
California's electricity market has implemented a significant mechanism called Bid Cost Recovery (BCR) for energy storage systems. Logan Goldie-Scot, a U.S. Power Market Analyst at Modo Energy, recently discussed this topic on CNBC.
BCR was initially designed as a safeguard for gas generators. It ensures they don't incur losses by following instructions from the California Independent System Operator (CAISO).
Goldie-Scot explained that BCR allows these generators to recover their costs, even when they're dispatched by CAISO. This mechanism helps maintain reliability and stability in the state's power grid, supporting both energy storage systems and gas generators in the world market. It ensures fair compensation for following CAISO's instructions, contributing to a balanced and reliable power grid, even on the stock market today.
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