Market Structures

The design and rules of wholesale, retail, and local electricity markets impact which, when, and how resources are purchased, sold, and utilized by system operators. Markets can generate efficient pricing for energy, capacity, and other ancillary grid services. Today, expanding and maturing markets are supporting investment in generation and grid infrastructure, putting new stress on the economics of coal, and improving the economics of renewables. In response, market parameters are evolving to support electricity reliability and affordability as systems accommodate higher levels of variable and distributed energy resources.

Through research and interviews with experts around the globe, RMI has compiled examples and data to describe how power sector leaders are leveraging market structures to make progress on energy transition priorities. Specifically, this report:

• Highlights why innovation in markets is critical to the energy transition
• Explains emerging global trends and associated challenges and opportunities
• Describes how market structures can advance the seven key outcomes for successful global energy transformation
• Articulates the edge of innovation for different countries and where attention is needed most
• Spotlights case studies to better illustrate what is being attempted across the industry and to share the experiences of practitioners

This report is part of RMI’s Global Energy Transformation Guide.