S&P Global: "Capacity Markets, though Flawed, Seen as Critical in US Energy Transition"

This story details a May 11 RFF Live event on capacity markets, as well as a new book on the same topic coauthored by RFF University Fellow Todd Aagaard.

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May 12, 2022

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S&P Global

Despite their many flaws, wholesale power capacity markets are likely to become increasingly crucial as the U.S. transitions to a cleaner energy mix, a panel of experts said May 11.

"Capacity markets, in the end, are supposed to be about the reliability of the grid, and as we move toward and through the energy transition, a lot of the focus is on the electrification of everything," Andrew Kleit, a professor of energy and environmental economics at Penn State University, said during a virtual panel hosted by independent research organization Resources for the Future...

Kleit co-authored the recently published book Electricity Capacity Markets with Todd Aagaard, a visiting fellow at Resources for the Future and law professor at Villanova University. The book offers a close examination of the nation's three mandatory capacity markets operated by the PJM Interconnection LLC, ISO New England and New York ISO, all overseen by the Federal Energy Regulatory Commission.

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