Capacity Markets and the Clean Electricity Transition
A discussion on the role of capacity markets in an evolving electricity sector
US electricity capacity markets aim to enhance the reliability of the power grid by compensating generators to be available to supply power when needed to meet peak demand. Initially created as afterthoughts to competitive electricity markets, capacity markets have evolved into complex billion-dollar institutions. As the United States transitions to a clean energy economy, capacity markets will need to respond to changes in demand, energy sources, and technologies.
On May 11, 2022, Resources for the Future (RFF) hosted an in-depth discussion on the role capacity markets can play in the transition to a decarbonized electricity system. This event featured a conversation on a new book, Electricity Capacity Markets, by Todd Aagaard and Andrew Kleit, which provides key insights into the design and regulation of capacity markets—past, present, and future. A panel of experts then discussed the role of capacity markets in an evolving electricity sector, the impact of widespread electrification on the role of capacity markets, the implications of climate policy, and more.
- Todd Aagaard, Villanova University, Resources for the Future
- Andrew Kleit, Pennsylvania State University
- Melissa Lavinson, Exelon
- Thomas Rutigliano, Sustainable FERC, Natural Resources Defense Council
- Kathleen Spees, The Brattle Group
- Karen Palmer, Resources for the Future (Moderator)
Todd Aagaard is a Visting Fellow at RFF and Professor at the Villanova Unviersity Charles Widger School of Law. His scholarship focuses on environmental law, energy law, and administrative law.
Senior Vice President of Federal Governmental and Regulatory Affairs and Public Policy, Exelon Corporation
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