Power Markets: Aligning Power Markets to Deliver Value

This whitepaper, written as part of America’s Power Plan, discusses the need to redesign power markets to account for the increased role of renewables and demand-side resources in the electricity sector. The main themes for future power markets are to increase energy efficiency, upgrade system operations to enable short-term flexibility, and upgrade investment incentives to enable long-term flexibility. This transition requires fewer and larger balancing areas, enhanced weather forecasting, encouragement for customer-side technologies and demand-side resources to improve flexibility, and increased frequency of dispatch decisions.