“Let’s Get Organized! Long-Term Market Design for a High Penetration Grid”
Eric Gimon* (Energy Innovation LLC)
This paper describes how to support continued rapid investment in new clean energy resources and retirement of dirty energy resources even as the raw output from variable energy resources gets more and more out of sync with customer demand profiles. It lays out principles for an “electricity markets cascade,” which efficiently recruits capital for electric sector investment to deliver on investor expectations of risk and return while meeting customer and policy-maker expectations for a least cost, clean, and reliable grid. It also proposes a new feature, Organized Long-Term Markets, as part of the standard design for restructured wholesale electricity markets.