Centralized Capacity Markets in Regional Transmission Organizations and Independent System Operators
Mike Hogan, RAP senior advisor, discussed the role of centralized capacity markets as a resource adequacy mechanism at a US Federal Energy Regulatory Commission technical workshop on Centralized Capacity Markets in Regional Transmission (RTO) and Independent System and Operators (ISO) (Docket No. AD13-7-000). Drawing on RAP’s beyond capacity markets concept and the paper What Lies Beyond Capacity Markets?, Mr. Hogan addressed potential changes to wholesale market structures in order to capitalize on the value of resource capabilities, not simply capacity. As the share of variable renewables increases, these changes will become critical to maintaining reliability at the lowest cost.