SPP secures funding for second phase of Markets+ development

AI generated summary

Southwest Power Pool (SPP) has initiated the second phase of its Markets+ development, aimed at enhancing the western day-ahead and real-time market, with a target launch in 2027. This phase is financially supported by Simmons Bank, which is providing $150 million for the full implementation of the market. The collaboration will involve stakeholders and staff working together to create the necessary systems for market operations, including trials and parallel operations.

SPP's Vice President of Markets, Carrie Simpson, emphasized the significance of securing funding for this phase, as it will contribute to a more efficient and reliable energy market for western stakeholders. The Federal Energy Regulatory Commission approved the funding agreement framework in April, which outlines the recovery of implementation costs. Eight utilities have committed to the initiative, showcasing a strong regional collaboration aimed at improving grid reliability and energy affordability. An analysis by The Brattle Group indicates that SPP may require substantial investments in generation to support future load growth, highlighting the need for new wind and solar generation alongside battery storage.