Research Priorities and Opportunities in U.S. Wholesale Electricity Markets: Market Design under Deep Decarbonization
This report contributes to the body of literature by reviewing key challenges for competitive wholesale electricity market design in deeply decarbonized power systems and establishing potential solutions and associated research needs. We provide a long-term perspective on ways in which competitive wholesale electricity markets can evolve to ensure that they still operate efficiently throughout the transition to a deeply decarbonized future. In this report, we use the term “deep decarbonization” to refer broadly to systems that generate nearly all their electricity from zero-carbon or carbon-neutral resources, while recognizing that there are many potential configurations of such systems. We also stress that many of these issues will arise to varying degrees as systems move toward full decarbonization, even if they are not truly 100% carbon-free.