Our society has come to expect, and require, uninterrupted power—even on the hottest days, coldest nights, and through the longest storms. These expectations do not change even as the grid transitions to highly variable renewable energy (VRE). With increased variability, serving electricity customers whenever and wherever is tough.

Resource adequacy is the volume of a utility's reliable supply to meet the customer’s round-the-clock energy demands. It is important for a power utility to ensure that customer demand is always matched by supply of electricity. Energy storage solutions ensure that utilities are able to ensure this at the lowest possible cost.

Resource adequacy analysis ensures that grid operators have the resources available, even through uncertainties like unexpected generator outages, fluctuating load, and changes in the weather. Evaluating these uncertainties statistically, grid planners project resource needs to reach an acceptably low level of risk of shortages.