Setting the Stage for Future Power Market Design
The changing generation mix across the United States is one of the most pressing reasons to modernize electricity markets.
Wholesale energy markets, commonly paired with capacity markets and ancillary services markets, are used to procure the electricity needed to balance the grid and serve load at all times. The observed trajectory of increasing renewable energy development, bolstered by widespread state and local decarbonization goals, point to the need for market structures that better accommodate the attributes of variable renewable energy while maintaining affordable and reliable electricity service.
To better understand what market structures and designs may be needed in a high renewable future, this topic evaluates what types of resources would fit together as part of an efficient, reliable, and low carbon portfolio.
We highlight four studies on this topic, summarized in short slide presentations. These studies show that the United States can reach 80-90% electricity sector decarbonization within the next two decades at little or no increase in cost, with today’s commercially available technology.
The four highlighted reference papers on this topic, and more in the Future Power Markets Forum research library, study options for a low or zero-emission least-cost generation mix.
Mr. Arne Olson of E3, Dr. Jesse D. Jenkins of Princeton University, Dr. Christopher T. M. Clack of Vibrant Clean Energy LLC, Mr. Ric O’Connell of GridLab shared the following slides on the for highlighted papers, to facilitate comparisons. They also offered commentary on the consensus and outstanding questions across the papers.