Rethinking Electricity Market Design: Time for Change in Changing Times?
AFRY Management Consulting has been working with Energy Systems Catapult on their Rethinking Electricity Markets initiative, which is developing proposals for reforming electricity markets so that they best enable innovative, efficient, whole energy system decarbonisation.
Through this work, AFRY has prepared a study entitled ‘Towards a New Framework for Electricity Markets’, which considers a potential framework for electricity market design that can help to support both delivery of and operation within a decarbonised electricity sector.
At the heart of this is the need for the market to provide ‘good’ market signals that reflect the true value to the system of different resource types with different characteristics and at different times and in different locations.
The full report steps through different drivers of value and, linked to these, develops requirements in terms of market signals as part of a potential future framework for achieving decarbonisation.