Forum Topics

Integrating Long-Term Procurement Markets, Short-Term Markets and Integrated Resource Planning

Hybrid markets, neither fully centralized or decentralized, can offer some of the benefits of both while effectively responding to state policy.

Dr. Paul Joskow, Elizabeth and James Killian Professor of Economics, Emeritus at MIT, shared a concept for combining competition with long-term procurement in this presentation.

Travis Kavulla, Vice President for Regulatory Affairs at NRG and former President of the National Association of Regulatory Utility Commissioners during his term as Public Utilities COmmissioner in Montana, responded to Dr. Joskow’s ideas in this article, with an eye towards state regulations: A tale of two markets: incentivizing long-term clean energy investments

Expert Commentary

These comments are personal opinions and do not represent the official position of an expert’s employer or clients or the Future Power Markets Forum.

Dr. Ake Almgren, formerly with PJM Interconnection

“Resource adequacy in wholesale electricity markets with intermittent resources at scale, as Paul Joskow so well described in his paper and presentation, is quite a challenge. For multi-state RTOs with very diverse states in terms of public policies with different interventions of subsidies and/or resource mandates it gets even more challenging. In the search for solutions, hybrid market models may be the viable way forward.”

Power Markets Structure & Design

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