Publications

Carbon Pricing in Wholesale Energy Markets

As states advance their climate policies with ambitious clean energy targets, wholesale market operators are grappling with questions about if and how electricity markets should evolve as a response. Several ISO/RTOs are looking to change their market rules to include carbon pricing, but there is a diversity in approaches.

Evaluating Options for Enhancing Wholesale Competition and Implications for the Southeastern United States

Given stated stakeholder clean energy and consumer goals, this paper offers a way to evaluate options for enhancing competition, compared to how utilities traditionally operate the electricity grid. The focus here is on wholesale transactions between generators and utilities serving end-use customers. These utilities then sell electricity at retail to their customers, and in many regions including the Southeast, they are state-regulated monopolies responsible for serving their customers at least cost.

Competition Case Study—The Southern Grids: 2000–2006

This case study lays out the four Southern proposals submitted to FERC, and chronicles how this directive played out in the South. In a sidebar, the case study also describes the retail competition vision being explored in North Carolina during the same time period. While the Southern Grids did not launch, the GridSouth (in the Carolinas) and the GridFlorida proposals reflect a concerted effort by the participating utilities to explore market creation, as well sustained engagement – and some support – by regulators and stakeholders.

Harnessing Competition in a Transitioning Electricity System: Opportunities for Traditional Cost-of-Service States

Cost-of-service states with vertically integrated utilities can manage a rapidly changing electricity sector by expanding opportunities for competition, even while maintaining the traditional vertically integrated utility. In fact, competition has been deployed successfully by cost of service states to meet customer needs, bring down costs, and encourage innovation.

State Participation in Resource Adequacy Decisions in Multistate Regional Transmission Organizations

The fight over which resources power the grid and how much is required has intensified as flattening electricity demand, low natural gas prices, and preferences for non-emitting technologies push less efficient power plants to retire. The focus has been on substantive solutions, and most recently on attempting to “accommodate” state energy policies in the regional electricity markets—with disappointing results to states, consumer advocates, and clean energy businesses. Missing from this debate is process reform.

Modeling Energy Efficiency as a Supply Resource

Energy efficiency may be an inexpensive way to meet future demand and reduce greenhouse gas emissions, yet little work has been attempted to estimate annual energy efficiency supply functions for electricity planning. The main advantage of using a supply function is that energy efficiency adoption can change as demand changes. Models such as Duke University’s Dynamic Integrated Economy/Energy/Emissions Model (DIEM) have had to rely on simplistic or fixed estimates of future energy efficiency from the literature rather than on estimates from energy efficiency supply curves. This paper attempts to develop a realistic energy efficiency supply curve and to improve on the current energy efficiency modeling.

Issues on the Horizon at the Federal Energy Regulatory Commission

The Federal Energy Regulatory Commission (FERC) is an independent agency regulating the interstate transport of energy. As innovations and changing consumer preferences reshape the energy industry, FERC must grapple with key issues. This policy brief summarizes pending issues before FERC, including grid resilience, market reforms that would affect newer technologies and non-emitting resources, and transmission and gas pipeline infrastructure build. How FERC decides on these issues would impact consumer costs, determine which resources would receive revenues from FERC-regulated markets, help shape infrastructure investments, and affect the costs of decarbonization policies.

Improving Market Design to Align with Public Policy

The Federal Energy Regulatory Commission, which regulates wholesale capacity markets, is looking to reconcile market design with state, and potentially federal, policy preferences. In an effort to mitigate this apparent tension in the gas- and coal-heavy Mid-Atlantic and Midwest, the Federal Energy Regulatory Commission proposed a framework on June 29 for carving out those policy-sponsored resources from PJM's capacity market. The June order poses many questions and leaves open many details for stakeholders to resolve ahead of the close of FERC’s initial round of public comments on October 2, 2018.  This policy brief offers recommendations to improve the efficiency of the developing proposals and help those responding to the FERC order understand the implications of different design choices related to the Federal Energy Regulatory Commission's proposal.

Effects of Technology Assumptions on US Power Sector Capacity, Generation and Emissions Projections: Results from the EMF 32 Model Intercomparison Project

This article is one of two syntheses in a special issue in the journal Energy Economics on the EMF 32 study, a major modeling study of the electric power sector’s emissions in various policy intervention scenarios. This article focuses on the effects of technology and market assumptions with projections out to 2050. A total of 15 models contributed projections based on a set of standardized scenarios. The scenarios include a range of assumptions about the price of natural gas, costs of end-use energy efficiency, retirements of nuclear power, the cost of renewable electricity, and overall electricity demand. The range of models and scenarios represent similarities and differences across a broad spectrum of analytical methods.

The EMF 32 Study on Technology and Climate Policy Strategies for Greenhouse Gas Reductions in the U.S. Electric Power Sector: An Overview

This introduction to a special issue of Energy Economics presents the key findings of Energy Modeling Forum Model Inter-comparison Project Number 32 (EMF 32) entitled “The EMF 32 Study on Technology and Climate Policy Strategies for Greenhouse Gas Reductions in the U.S. Electric Power Sector.” This study focused on the development and cross-model comparison of results from U.S. climate policy intervention scenarios focusing on policy strategies for achieving greenhouse gas emission reductions in the electric power sector and the sensitivity of emissions and economic results to changes in technology and market assumptions. This overview article describes the motivation for the EMF 32 study, identifies the models used in the study, describes the study's scope and design, and reviews insights in the special issue's articles. A related article focuses on the effects of technology and market assumptions with projections out to 2050.