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Product Abstract

Capacity and Energy in the Integrated Grid

Product ID:3002006692
Date Published:27-Jul-2015
Sector Name:Power Delivery & Utilization - Distribution & Utilization
Document Type:Technical Results
Price:No Charge

This Product is publicly available

   1.57 MB - Adobe PDF (.pdf)


It is commonly understood that electric energy is generated at power plants and delivered to consumers over a network of power lines. Less familiar are those capabilities required from wires, transformers, generators, and other power-system equipment to constantly meet consumers’ dynamic demand for electric energy. These capabilities are often collectively referred to as capacity. The system, as a whole, must have the capacity to generate and deliver the maximum energy required at every location within.


This paper addresses the role of capacity and energy in the Integrated Grid by providing insights from EPRI’s research in the following areas:

  • How individual resources may contribute differently to the system’s capacity to deliver energy;
  • How changing supply and load characteristics make it necessary to distinctly address both energy and capacity on wholesale and retail levels;
  • The cost of capacity, based on an assessment of cost structures of several U.S. utilities;
  • Emerging trends in wholesale markets and retail rate structures to value capacity and energy as distinct elements of those markets/structures; and
  • Key research to enable DER to provide both capacity and energy.


Informing all stakeholders on the importance of capacity and energy in an integrated grid will be an important step as various jurisdictions consider policy and regulation that reflects the influence of renewable resources, distributed generation, energy storage, and new, more efficient loads. This report does not intend to state or imply preference regarding any particular market rules or retail rate structures insofar as those rules/structures encourage sufficient capacity with the flexibility required to continually satisfy demand.


2015 Program  
  • Demand
  • Capacity
  • Electricity markets
  • Integrated grid

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