Adapting wholesale electricity market to the decarbonization

Increased penetration of renewable resources in the wholesale electricity market has the potential to impact revenue sufficiency of the market by suppressing average locational market prices (LMPs) and on the other hand, it can increase market price volatility that increases the divergence between the day ahead and real-time LMPs. In addition, it is necessary to evaluate the impact of high penetration of these variable resources on participating generators scheduling, system flexibility needs and strengthening the ties between energy and ancillary services market. The greater uncertainty in generation introduced by these resources can increase violation of power flows and system congestion patterns. The objective of the session is to evaluate the needs for ISO/RTO wholesale market design evolution for seamless integration of increasing shares of variable generation from the perspective of revenue sufficiency and long-term system reliability requirements. The session will be a mix of perspectives from ISO/RTO, national labs, and academia to encompass viewpoints from various stakeholders in the process.