January 31, 2022
FOLSOM, Calif. – The Western Energy Imbalance Market (EIM) attained a record setting $739 million in benefits in 2021, surpassing all previous yearly results and pushing the real-time market closer to the $2 billion mark in total efficiencies since its start in 2014.
Last year’s benefits are more than double the $325 million accrued in 2020. The market saw $204.14 million in fourth-quarter 2021 benefits, for a cumulative total of $1.93 billion. That level of benefits for the last quarter of 2021 is due to the addition of several new EIM entities earlier in the year and a higher volume of economical transfers, which displaced generation that was more expensive.
“The Western EIM’s outstanding performance last year provides further tangible evidence of the value of broad regional market coordination,” said California Independent System Operator (ISO) President and CEO Elliot Mainzer. “We are excited to be working with our many partners across the West to build on this strong foundation and produce additional economic, environmental and reliability benefits through an extended day-ahead market (EDAM).”
The Western EIM uses sophisticated technology to find and deliver the lowest-co energy to its members, while enhancing reliability and providing significant environmental benefits through the reduction of renewable energy curtailments during
periods of oversupply.
Reducing curtailments leads to lower greenhouse gas emissions because the renewable energy - rather than going unused - can be deployed by other market participants, and may displace power generated using fossil fuels.
Texas ERCOT is turning red and purple because they are isolated from such grid cooperation.