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).

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.

The process of creating electricity. 

Heat derived from the Earth’s interior, which can be harnessed for electricity generation. It’s a renewable resource, as the Earth’s internal heat is continuously replenished.

The electrical grid is a vast, interconnected network comprising power plants, transmission lines, substations, and distribution lines. Its purpose is to generate, transmit, and deliver electricity from producers to consumers across a wide geographic area. 

A variety of technologies that improve the capacity, efficiency, and reliability of existing power grids. They are often lower cost and faster to deploy than major grid infrastructure upgrades like building new transmission lines. These technologies optimize the flow of electricity across existing infrastructure.

Refers to the ability of an inverter to synchronize with frequency and voltage on the grid. These are more common than grid forming and refer to how this technology takes its cues from the grid, not the other way around.

Refers to the ability of an inverter to actively control frequency and voltage on the grid, helping to ensure grid stability. They can provide ancillary services, such as inertia, voltage regulation, and frequency response, essential for maintaining grid stability.

Refers to the many solutions that help the grid withstand major events, such as extreme weather, natural disasters, or cyber attacks, without disruption.

Wind turbines erected in bodies of water that harness the power of wind, converting it into electricity that is then transmitted to the mainland to power homes and businesses. Offshore wind farms are considered a renewable energy source.

The real-time balancing of energy supply and demand to maintain frequency and voltage within safe operating limits. It is the shorter-term dimension of reliability and requires regular monitoring and control of the entire grid. It includes the ability to quickly respond to sudden changes, like the loss of a major power plant or transmission line, and to handle normal variations in supply and demand.

A network of distributed energy resources—like rooftop solar panels, electric vehicle chargers, and smart water heaters—that work together to balance energy supply and demand on a large scale. They are usually run by local utility companies that oversee this balancing act.