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Can markets work at net zero?

Sep 21, 2022

In ECA’s recent Insight, Robert Barnett looks at market designs being proposed to cover the case where increased penetration of near-zero variable cost generation from renewables and nuclear leads to a collapse in prices to zero at times. This insight considers what is actually happening to prices and why the solutions being proposed seem not to consider the economics of price signals and efficiency incentives and so do not provide advantages for consumers and generators compared to the status quo. The solutions seem to offer a halfway house approach that is likely to have the opposite effects to what was intended. Read the full Insight here.

 

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