Dramatic growth in wind, solar and energy storage alongside greater electrification of the economy will transform the power sector over the next decade. Wholesale power markets are evolving to accommodate the shifting landscape, but further adaptation will be needed to maintain reliable and resilient markets while achieving decarbonization objectives. Can wholesale power markets survive in a renewables-dominated future? What is the future for capacity markets and ERCOT’s energy-only market? How will resource adequacy planning evolve and be incentivized to handle increasingly dynamic power markets?
The Inflation Reduction Act (IRA) is intended to spur the deployment of clean energy technologies and propel the U.S. toward a decarbonized power system. In 2023, the U.S. installed a record amount of solar PV and grid-scale batteries, but the pace will need to accelerate sharply to meet the Biden administration’s climate ambitions. While the IRA provides the financial incentives to ramp up deployment, stubborn obstacles persist. What progress has been made so far under the IRA? What options are available to overcome hurdles to deployment such as local community opposition, long grid interconnection queues and supply chain challenges?