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Power Markets in Transition: Consequences of Oversupply and Options for Market Operators

  • Sonia AggarwalEmail author
Energy Markets (R Sioshansi and A Mousavian, Section Editors)
Part of the following topical collections:
  1. Topical Collection on Energy Markets

Abstract

Purpose of Review

This paper explores the transition underway in competitive power markets in the USA and provides options for market operators to reliably manage through the current period of oversupply into a lower-cost, lower-carbon power system.

Recent Findings

There are several structural factors, as well as some more recent and short-term dynamic factors, contributing to oversupply in the power system.

Summary

Power market operators have options for thoughtfully managing the transition, which include updating resource adequacy frameworks and ensuring market product definitions remain technology neutral given emerging technologies. Load serving entities can also hedge on behalf of their customers by contracting for low-carbon, low-cost sources of grid flexibility.

Keywords

Competitive power markets Energy transition Overcapacity Grid flexibility Wholesale power market design Reliability 

Notes

Compliance with Ethical Standards

Conflict of Interest

Sonia Aggarwal declares no potential conflicts of interest.

Human and Animal Rights and Informed Consent

This article does not contain any studies with human or animal subjects performed by any of the authors.

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Copyright information

© Springer Nature Switzerland AG 2019

Authors and Affiliations

  1. 1.Energy InnovationSan FranciscoUSA

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