California’s electricity market is built on a complex foundation of incentives designed to keep the grid reliable and resources compensated fairly. Bid cost recovery (BCR) is one such incentive that’s becoming an increasingly important settlement mechanism for energy storage systems in the state.
“It’s important to understand why BCR was originally created,” said Ovais Kashif, a U.S. power market analyst at market research firm Modo Energy. He told ESS News that the program was built to provide a kind of safety net for gas generators; the goal is to ensure that they aren’t left operating at a loss from following CAISO’s instructions.
To read the full story, please visit our ESS News website
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