U.S. Regulatory Innovation to Boost Power System Flexibility and Prepare for Ramp Up of Wind and Solar
Well-designed electricity markets can help deliver sustainable, reliable, and cost-effective power systems and are key to integrating variable renewables. Prices from such markets can signal where and when the power system needs more flexibility, but they cannot deliver optimal outcomes if market access to new competitors is limited.
Comprehensively reviewing and removing market barriers is an important task worldwide. As part of its mission to help countries learn from their counterparts’ best practices, the International Energy Agency (IEA) highlighted how the United States is facilitating its transition to a cleaner power system while keeping costs in check for electricity consumers in a commentary by Jennifer Chen, senior counsel at Duke University's Nicholas Institute for Environmental Policy Solutions, and Szilvia Doczi, economics lead at IEA.