Southeast electric providers launch new energy exchange
Last week, a group of energy companies serving approximately 50 million people in the U.S. Southeast have established a centralized, automated energy exchange known as the Southeast Energy Exchange Market (SEEM) and intend to file for federal approval.
Known as a 15-minute energy market, the exchange would allow utilities in the region to enter bilateral agreements for their excess capacity. The companies involved — including Duke Energy, Dominion Energy, Southern Company, the Tennessee Valley Authority, and many others — intend for SEEM to lower customer costs and optimize their renewable energy resources.
However, the exchange proposal is still subject to approval by the Federal Energy Regulatory Commission (FERC). If approved, operations could begin by the fourth quarter of 2021. Participation in the market will be open to other entities that meet appropriate requirements.
The 15-minute energy market will be a first of its kind for the region, using technology and advanced market systems to match participants with low-cost energy. With sub-hourly trading, participants will be able to buy and sell power closer to the time the energy is actually consumed. Each member will maintain local control of their generation and transmission assets according to the program’s voluntary nature.
A detailed study by SEEM members and an independent consultant deemed the platform could bring anywhere from $40 million to $50 million value annually to retail customers in short order, and perhaps as high as $150 million as more renewable energy resources are added. Members believe that, in addition to cost savings, this shows a robust system that could further integrate energy resources at large.
Additional transparency measures were added to the platform proposal by energy regulators, policymakers, consumer advocates, non-governmental organizations, energy associations, solar developers, and business customers, with whom SEEM members discussed the potential structure and benefits of the program.
