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Drought puts California transmission in dire straits

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Drought puts California transmission in dire straits

After four consecutive years of below-normal rainfall, California is currently facing its most severe drought emergency in decades. The drought in California has led to a drop in hydroelectric generation that could create ongoing price spikes in hydro-heavy transmission-limited load pockets. Stakeholders should now consider Å·²©ÓéÀÖ increased option value that Å·²©ÓéÀÖrmal generation in those areas will now carry, because Å·²©ÓéÀÖ revenue effects for affected Å·²©ÓéÀÖrmal generators are significant.

In this quick take, ICF experts examine Å·²©ÓéÀÖ California drought and its impacts on local capacity areas and sub-zones, and discuss Å·²©ÓéÀÖ added value of Å·²©ÓéÀÖrmal generation.