IEEE Power & Energy Magazine - January/February 2021 - 45

research firm, recently evaluated possible options for future
electricity market designs. The team established 10 key principles for wholesale electricity markets, which ensure economic efficiency, reliability, and technology neutrality. The
Energy Systems Integration Group (ESIG) also held a workshop " toward 100%, " with six important tracks on key challenges. One of those tracks was on future markets, where the
participants discussed key challenges and potential strategies.
Numerous ISOs and regional transmission organizations in
North America have also authored studies and reports looking at future resource mixes with very high VRE, including
New York Independent System Operator (NYISO), Southwest
Power Pool (SPP), and others.
The Energy Innovation team established that wholesale
electricity markets should do the following:
1)	 accommodate rapid decarbonization, providing opportunities for the participation of zero-carbon resources

nor heat rates to make efficient. Unit commitment costs may
be negligible, and installed capacity may not be the primary
attribute signifying supply adequacy. Many participants may
bid into the market based not on fuel costs but on opportunity costs. For example, the opportunity cost of demand-side
resources is based on forgoing or shifting consumption, and
the opportunity cost of energy-limited resources is based on
the potential lost profit if energy produced cannot be sold
later due to lack of energy stored. Moreover, price signals
may be needed to incentivize attributes or behaviors that are
abundant today but may become crucial and in short supply
in the future.
At the onset of electricity sector restructuring, market de--
signers considered what markets should be signaling. This is
as important now as it was then, and while the resource mix is
changing dramatically, the principles are mostly unchanged.
A research team led by Energy Innovation, an energy policy

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figure 2. Trends in the (a) net load, (b) energy prices, and (c) downward regulation reserve prices in the CAISO, which
reflect the impact of increased solar.
january/february 2021	

ieee power & energy magazine 	

45
IEEE Power & Energy Magazine - January/February 2021

Table of Contents for the Digital Edition of IEEE Power & Energy Magazine - January/February 2021
