A Micro Model of the Energy Transition for Market Design: Clean Energy Procurement
PJM Senior Lead Economist Emmanuele Bobbio will dive into the interaction between forward and spot markets, and how that interaction will determine the speed of the energy transition. He utilizes a model of the dynamics that result from individual decisions of profit-maximizing investors in forward or capacity markets based on their expectations of future costs and profits from spot markets to assess the implication for various mechanisms used to procure clean energy on entry and exit decisions, reliability, costs, profits, and emissions.
Showcased at Xcelerate Dallas - 2022
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