Cochran, Jaquelin, Mackay Miller, Michael Milligan, Erik Ela, Douglas Arent, Aaron Bloom, Matthew Futch, Juha Kiviluoma, Hennele Holtinnen, Antje Orths, Emilio Gómez-Lázaro, Sergio Martín-Martínez, Steven Kukoda, Glycon Garcia, Kim Møller Mikkelsen, Zhao Yongqiang, and Kaare Sandholt. 2013. Market Evolution: Wholesale Electricity Market Design for 21st Century Power Systems. Golden, CO: NREL.
Market design–determining how to create incentives and compensate resource providers fairly for attributes and performance that ensure a reliable and secure grid–is critical to realizing the potential of a broad array of sources of flexibility in both the wholesale power and retail markets.
This report reviews the suite of wholesale power market designs in use and under consideration to ensure adequacy, security, and flexibility in a landscape of significant variable renewable energy. It also examines considerations needed to ensure that wholesale market designs are inclusive of emerging technologies, such as demand response, distributed generation, and distributed storage.