California ISO

The maximum amount of power an energy source can physically produce (measured in megawatts/MW), or when referring to an electrical grid, the total amount of electricity that power plants connected to the grid are capable of producing. It’s essentially the total potential output of all the electricity sources, like coal, nuclear, hydro, wind, and solar plants. Meanwhile, energy is the actual output of a source over a particular time period. 

• Capacity accreditation – The process by which grid operators determine the reliability contribution of individual power resources (such as power plants or energy storage systems) to the overall electricity grid. It quantifies how much a resource can reliably contribute to meeting demand, especially during peak times or periods of tight supply, guiding investment decisions for grid stability.
• Capacity auction – A competitive market mechanism where grid operators or utilities purchase energy in the market from electricity generators (such as coal plants, wind, and solar farms) or demand-response participants for future energy needs. Essentially, the generators or demand-response entities provide their energy or technology for future periods of high demand. Capacity market auctions ensure enough electricity is available for future demand at the lowest achievable price for consumers. The goal is to balance reliability with cost by having market participants compete. There are two main types of auctions:
  • Forward capacity auctions: held years before the capacity is needed, giving operators time to upgrade or build facilities. 
  • Incremental auctions: take place closer to the delivery time, adjusting for changes in demand or unexpected generator issues.  

Generally, participants submit sealed bids to offer capacity at specific prices. The auction ends when the total capacity offered matches the region’s needs, and a single clearing price is set for all commitments.  

• Capacity costs – The charges associated with ensuring a sufficient supply of power to meet peak demand. These charges cover the cost of maintaining and operating power plants, transmission infrastructure, and other components needed to meet the highest levels of electricity usage, essentially guaranteeing power is available when it’s most needed.
• Capacity market – A type of wholesale market designed to ensure there will be enough power generation available in the future to meet peak demand and maintain grid reliability. Generators receive payments for promising to be available to produce electricity when needed, even if they aren’t running all the time. Functions sort of like an insurance policy, in that generators are paid for the promise to show up with power during times of high demand. This type of market is a method to maintain resource adequacy. Not all markets use this method (example: Electric Reliability Council of Texas (ERCOT).

An energy source that generates electricity with zero- or extremely low-carbon emissions, and can do so when needed, regardless of weather conditions. They include enhanced geothermal energy and advanced nuclear technologies. They also can include solar or wind paired with battery storage to provide on-demand power supply regardless of weather conditions or time of day. 

Refers to a regulatory approach for connecting new power generators to the electrical grid, notably used in Texas (ERCOT). This approach allows new generators to connect expeditiously with minimal upfront transmission upgrades. However, the grid operator retains the right to curtail their output if transmission constraints arise. This contrasts with approaches where developers pay for upgrades prior to connection. (see Energy-only interconnection approaches)

An accelerated stakeholder process used in PJM Interconnection to resolve urgent, contentious, and time-sensitive issues that cannot be resolved through the normal stakeholder process. The process involves several stages of discussion and proposal development, culminating in a submission to the Federal Energy Regulatory Commission (FERC) for approval. The CIFP process has been used in recent years to discuss large load additions (2025) and resource adequacy (2023).

The mechanism for choosing the lowest cost energy option that meets energy needs, which gives cheaper renewable energy and battery storage an edge. 

• Uneconomic dispatch – when a grid operator/utility chooses a higher-priced energy option, or above market-rate source, to meet electricity needs. This has emerged as a significant problem in areas where United States utilities are operating coal plants that can’t compete on cost with gas-fueled facilities and renewables. This practice allows utilities to continue to collect the costs of fuel and operations from customers to pay off their investment in the power plant.

Measurement used to calculate how much an energy resource–such as a wind farm or solar array–contributes to the overall reliability of the grid. It assesses the resource’s ability to meet electricity demand, particularly during peak usage periods, and is especially useful for variable renewable energy sources whose output depends on factors like weather conditions. 

Measures that reduce electricity use in a home or business. These measures include replacing inefficient heating and air conditioners with heat pumps, adding attic insulation, and sealing ducts and foundation, walls, roof, windows, and doors of buildings. It also includes replacing energy-intensive appliances with more efficient ones. These measures can provide energy savings, improve comfort, and increase property values.

Connecting new generation to the grid with minimal transmission upgrades and managing impacts through operational strategies rather than extensive upfront infrastructure investments. This approach, often referred to as “connect and manage,” prioritizes adding generation capacity quickly while relying on the grid operator to manage any resulting operational constraints. It requires new resources to risk curtailment (where the generator is asked to stop supplying power to the grid when supply is too high). The process has allowed Texas’ ERCOT to connect record numbers of new clean projects in the last several years significantly faster than other regions. 

The Electric Reliability Council of Texas serves as an independent system operator (ISO), managing the flow of electrical power over transmission infrastructure in the state of Texas.

A combination of automated and manual controls grid operators adjust to maintain grid reliability by ensuring a balance between supply (generation) and demand (load). They generally consist of three main aspects:

• frequency response – short-term adjustments to maintain the grid’s oscillations at 60 hz), 
• balancing – related to frequency response but on longer time frames, to, for e.g., plan for energy resource outages due to maintenance, and 
• voltage control – involves magnetic waves to allow for the movement of watts of energy

An independent agency that regulates the interstate transmission of natural gas, oil, and electricity. FERC also regulates natural gas and hydropower projects.

A United States law primarily regulating the interstate transmission and sale of electricity and the development of hydroelectric power. It was responsible for creating the body now known as FERC. It was created in 1920 and has been amended several times since. 

Measures taken to ensure backup power, particularly of renewable energy, such as solar and wind generators. These requirements may require battery storage, ancillary services, or backup generation, such as an added gas plant to produce energy when a solar or wind plant does not.

Electricity is supplied to homes and businesses in the United States in the form of alternating current, and frequency is the rate at which an alternating current changes direction, as measured in hertz (Hz). Across the power grid there is a consistent frequency which in the United States is 60 Hz. 

The ability of the grid to react to a change in

the frequency to bring it back to the normal operating frequency, which is 60 Hz in the United States

• Inertial response refers to the injection of stored energy, such as battery energy, into the electricity grid to slow down a decline in frequency. 
• Primary frequency response – The first line of defense against frequency fluctuations that could destabilize the grid. It takes the form of immediate, automatic adjustments in power output by generators and loads in response to frequency deviations in the electric grid.
• Fast frequency response consists of the combined inertial response and primary frequency response. It injects energy in the seconds immediately following a disturbance to slow frequency decline and establishes the minimum frequency (called the nadir).
• Secondary frequency response works on a slightly longer time frame than primary frequency response, on the order of 5-15 minutes. It maintains grid frequency and allows for scheduled energy transfers between balancing authorities, which include utilities, regional transmission operators, and other grid management entities.

Midcontinent Independent System Operator, serves northern Midwest, southeast, and parts of Canada

(see: Interconnection Queue)

Measure of the rate of energy transfer over a unit of time, with one watt equal to one joule (J) per second.

A form of renewable energy that uses the kinetic energy of wind to generate electricity. It involves capturing the wind’s energy through turbines, which then convert this mechanical energy into electricity. Modern wind power generation primarily relies on wind turbines, often grouped into wind farms, connected to the electrical grid.