Balancing Wind, Water energy and salmon interests

An article in the New York Times (Dec 7, 2011) describes the coordinating role played by a Federal power agency, Bonneville Power Administration, that was faced with accepting power from hydroelectric and wind sources during stormy weather.  The agency dropped the wind source and accepted hydroelectric sources during surges in supply to prevent buildup of nitrogen gas in water that passes through spillways and that can harm salmon.  As a result, wind companies lost sales and production tax credits.   Wind companies recommend negative pricing i.e., paying consumers to use power. Others recommend enabling consumers to store power in their homes.  How should the competing interests of different energy sources, and their correlated surge in power generation, be accommodated ?   Should manufacturers who can ramp up production during periods of energy surges be incented to assist in solving the supply demand mismatch of energy supply ? Should wind companies regulate their power generation by shutting down some windmills to coordinate input of power i.e., should they have an incentive to stabilize their power supplied to the grid ?

About aviyer2010

Professor
This entry was posted in Collaboration, Operations Management, Service Operations, Supply Chain Issues, Sustainability and tagged , , , , , , , , . Bookmark the permalink.

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