Adam Levey 🔋
@AdamLevey7
Lead quant at Habitat Energy. Gamma Merchant. On a mission to end poverty through expanded access to cheap clean electricity
Step 1-cap energy offers to create missing money problem Step 2-create capacity markets to inefficiency solve problem you created Step 3-price cap capacity makets to make sure we don't have enough incentive for new builds Step 4-blame everyone else when brown/blackouts occur
26/27 BRA
Grid scale batteries are the solution to a bunch of inefficiencies we created. Almost every policy or technological innovation to impact the grid over the last 20 years has been short gamma: -coal retirements -wind -solar -DR and TOU (controversial but true) -electrification…
Capacity Markets are a non-solution to a problem that never existed. Be like ERCOT - let price signals work, install tons of solar and storage, manage 100 degree weather with reasonable prices for consumers
Another one! We're now operating 1.2 GW of ERCOTs ~9 GW of storage assets. We've grown from about 50MW to this 1.2 GW in about a year with much more on the way. Super excited about what we're building and the problems we're solving for the industry habitat.energy/habitat-energy…
Some good news: ERCOT is predicting a less than 1% risk of rotating outages this August. That's a big drop from last year's forecasted risk of 12%. The main reason for the reduced risk? The rapid growth of battery storage, @sara_dinatale writes: expressnews.com/business/artic…
Given this trend I would be shocked if the ITC goes away. Would be an instant 30% rise in prices
Major political issue battleground in coming years
Take the ERCOT pill. It is the path to cheap clean energy at scale as quickly as possible
Texas has decoupled renewable content from prices. no one else has.
Once again we have storage discharge peaking before prices as the system runs out of BESS SoC. Price formation has become game theoretic all the way down to each 5 min SCED interval. Having an extra hour in that theta decay function is becoming increasingly important
The solution is more BESS - and everywhere. Very few fully understand the way the a single battery solves for temporal volatility but a portfolio solves for geospatial volatility
Incredible price separation in Louisiana this evening @MISO_energy @Entergy
Lots of great discussion in this thread. Fundamentally the value of power is moving from delta value to gamma value. Anyone short the gamma will be squeezed whether you are a solar/wind w PPAs developer or a LSE
The thing that I find concerning about the ERCOT solar market development is what I hear about out-of-ERCOT buyers being able to contract for solar PPAs at massive scale , which is something I intuitively would think is corrosive to system supply security in the medium-long term.
Habitat Energy to optimise 200MWh Epic Energy battery - click here: hubs.la/Q03gM1Lj0 Pictured: Greg Billman (Habitat Energy) & Clive D’Cruz (Epic Energy) #energystorage #batterystorage #batteries #australia