US Power Market Reform in the Southeast and West
Power market conditions affect the ability to deploy and connect clean energy to the grid to meet current and future electricity demand. In certain parts of the U.S. — like the Southeast and West — electricity markets are less efficient than they could be, boxing out stakeholders who are otherwise eager to participate and hampering the ability to bring affordable clean power online.
The Southeast and West are also hotspots for the significant load growth expected across the United States in the coming years, driven by new data center buildout; energy-intensive manufacturing; and the electrification of transportation, industry and other sectors. Increasing the use of competitive power trading and procurement for utilities in these regions can help meet growing demand.
WRI, in collaboration with Duke University’s Nicholas Institute for Energy, Environment & Sustainability (NIEES), is researching how to make power trade more competitive in the U.S. Southeast and West to better understand how market barriers to clean energy deployment might be overcome. Our main areas of focus are:
1) Investigating market reforms to increase efficiencies in power trade and customer access
Our team is exploring a spectrum of options for encouraging increased market efficiencies and customer access in these regions, which will ultimately enhance energy reliability, affordability and sustainability in the United States.
Building on past work, this project will explore improvements to policies, regulatory frameworks and incentive structures that lead to increased competition.
2) Informing decision-making and advancing solutions
Access to clean, affordable and reliable energy is a key consideration for state and local governments as they look to attract economic development opportunities to their regions.
We are working with state and local decision-makers to ensure they have evidence-based policy analysis that can help them implement reforms to meet the needs of the people and communities they affect.
Cover image by DENNIS SCHROEDER / NREL
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Working Paper September 1, 2021
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Power System Reform
Visit ProjectEngaging with wholesale market operators, utilities, developers, electricity customers and other key actors to strengthen and modernize the U.S. power system
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