Dive Brief:

• A voluntary capacity auction for preferred resources is being developed by the California Independent System Operator (ISO) to advance the state’s policy goals and fill in the gap created by the permanent shutdown of the San Onofre Nuclear Generating Station.
• Preferred resources are local energy efficiency, demand response, renewable resources, combined heat and power and energy storage.
• The voluntary capacity auction was derived from a reliability plan that was created by the ISO, the California Public Utilities Commission and the California Energy Commission. The utility commission said 50% of generation lost from the nuclear plant should come from preferred resources.

Dive Insight:

Could this be a glimpse of the future for other sections of the country, especially the Midwest? This was prompted by the loss of one nuclear plant in one state. Thousands of megawatts of coal capacity are set to retire across the country and regulators will need innovative policies to make up the shortfall.