The future design of the electricity market

Michael Pollitt

Chapter 16 in Handbook on Electricity Markets, 2021, pp 428-442 from Edward Elgar Publishing

Abstract: In this chapter,we consider the future of electricity markets. We start with a comparison of the PJM market design with the European market design. Next, we discuss how intermittent renewables and flexible demand are stress-testing the current market designs. We proceed with a discussion of the concerns of regulators and how this relates to market design. We then examine the nature of the firm and market choices and how these are directly relevant to future market design. Here we point out that electricity economists emphasise flexible market arrangements whichmaximizewelfare whereas electrical engineers tend tofavourmechanistic pricing arrangements. We conclude with a discussion of potential new market arrangements which are radically different from the current market design, drawing out ideas from the management of the internet, and hybrid arrangements which combine elements of the current designs with radically different arrangements.

Keywords: Economics and Finance; Environment; Law - Academic (search for similar items in EconPapers)
Date: 2021
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://www.elgaronline.com/view/edcoll/9781788979948/9781788979948.00023.xml (application/pdf)
Our link check indicates that this URL is bad, the error code is: 503 Service Temporarily Unavailable

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:elg:eechap:18895_16

Ordering information: This item can be ordered from
http://www.e-elgar.com

Access Statistics for this chapter

More chapters in Chapters from Edward Elgar Publishing
Bibliographic data for series maintained by Darrel McCalla ().