Keeping the Lights On: Designing future power markets
Power & Renewables
Technology and consumer preferences are reshaping the electric power industry. The declining cost of wind, solar, and energy storage—now competitive with natural gas generation in many markets—bolsters the demand for carbon-free electricity. Individuals, corporations, and governments look to electricity as the central fuel for a future low-carbon world. Power markets must evolve to incorporate this environmental demand alongside the existing tenets of the power industry—least cost and reliable. How will, and can, markets adapt to fulfill all three objectives simultaneously and efficiently? Are there limits to what markets can achieve? What are the implications for energy companies, investors, and customers? What lessons about market design have we already learned?