Reliability stands as one of the three pillars governing electric sector policymaking, along with environmental sustainability and affordability. As we pursue the necessary transition to a low-carbon power system, we must also maintain an acceptable standard of reliability at the lowest reasonable cost. This transition is taking place, in many regions, against the background of the ongoing evolution of competitive wholesale electricity markets. While some conflict between the goals of these parallel transitions is unavoidable, properly implemented markets also present important opportunities to ensure that the transition to a decarbonized power system proceeds as smoothly, reliably, and cost-effectively as possible. In other words, leveraging these opportunities calls not for abandoning markets, but for improving and adapting market design, rules, and operations. Well-implemented power markets have a unique role to play in shaping investment that reflects most clearly what is most valuable in a low-carbon power system.
In a webinar held on August 25, 2016, Michael Hogan explored:
- The changing nature of the investment challenge in a low-carbon power system;
- How markets can be adapted to better reflect and respond to the needs of the power system;
- Why the emerging empowerment of consumers is essential both to markets and to the low-carbon transition;
- The essential role energy market prices can play in driving the most innovative solutions; and
- How the intersection between new low-carbon investment and competitive markets may evolve going forward.