Planning reliable power systems requires understanding peak demand. Peak demand determines the required power system capacity to meet reliability standards. Peak demand will be in decline each year but it is still a critical element of system planning. By 2028, peak demand is projected to decrease by 0.14% annually.
ICAP
ICAP provides utilities with pricing signals that encourage investment and promote resource adequacy. ICAP power stations in New York are usually purchased by utilities to satisfy peak load requirements and excess wholesale rate requirements. This approval is granted by federal regulators. ICAP is used to create mandatory capacity markets, such as ISO New England (PJM Interconnection). It is also used to create ICAPs in Texas and other States.
IRM
IRM is an essential component of the reliability rules applicable to New York's electricity grid. It defines the percentage of supply resources that can meet peak demand and is based on the latest load models. It also considers demand response and energy storage technologies. These are used to keep the lights on in an outage.
DERs
Distributed energy resources (DERs), which vary production and consumption, provide power quality value. This can reduce energy losses and prevent voltage excursions on distribution feeders. DERs can also be used to increase the power plant's capacity in times of demand fluctuations.
Generator deactivation assessment
New York Independent System Operator, NYISO, has introduced stricter regulations for simple cycle combustion turbine plants to reduce ozone levels. Owners of power plants must comply with the new rules by 2023 or 2025. The current peak power generation capacity for New York is 648MW. Retrofitting peak capacity of 1,300MW is underway. New York's power stations also have higher average temperatures that most other parts of the country. Deactivation of these plants can cause higher than normal demand.
DER participation model
The DER participation model in NYISO is designed to ensure that DERs are connected to a transmission node that is capable of responding to dispatch instructions. This requirement is required to safeguard the reliability and availability of New York power stations. The DERs must adhere to the New York state Reliability Committee requirements. These requirements include inverter-based energy storage technology and aggregation capabilities.
Generating capacity
The state has been increasing its generating capacity in recent years with a special focus on the upstate. This is partly due to the fact that electricity produced in the state is mainly generated in areas with low population density and because lines running downstate can get gridlocked during peak demands. In recent years, the State has added 11,846MW of electricity, with a large part of it coming from renewables.
Renewable energy credits
New York state announced plans for expanding its Renewable Energy Credits (RECs), program that helps power plants produce renewable energy. This will allow New York to reach its 2030 goal of 70% renewable energy and achieve the state's 2040 Zero-Emission Target. It will also encourage renewable energy use, improving air quality and protecting the environment.