Experts mull market, reliability rule changes amid Texas, regional outages
However, some of NERC’s prior recommendations have not suited the Texas energy market, according to Devin Hartman, director of energy and environmental policy at the R Street Institute, a free-market think tank. Texas requires a “market process that provides the proper financial incentives to suppliers to handle this type of risk,” he said.
“The big question, I think, in this case, is just ‘how much of an outlier event is this?'” Hartman said. “Because the ERCOT model is based on market participants who make investment decisions based on a set of probabilities, expectations about the future. … The role of standards should be differentiated based on the regulatory framework that occurs at the state level.”