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[Episode #157] – Market Design for the Energy Transition

This one is for the electricity market geeks!

Most observers of electricity markets are well aware that adapting them to the new kinds of technologies and policies needed for the energy transition is an ongoing project with no simple answers. Even if there were simple answers, it would be hard to implement them, because there are so many different market designs in operation already that will have to find ways to accommodate these reforms.

But perhaps by thinking about the specific attributes of electricity contracts, and how various kinds of contracts serve different purposes, we can begin to understand the ways they can help meet the needs of diverse market participants and properly represent the value of disparate resources. In this episode, energy researcher Eric Gimon returns to the show to share his conceptual framework for how electricity markets can function in the energy transition, and how those concepts can be applied to the markets we have today. We start by addressing the zombie theory of “value deflation” in solar, and end up in a very heady conceptual space well deserving of this episode’s geek rating of 10!

Guest:

Eric Gimon is an active researcher and policy adviser on the power sector transformation to a clean, reliable and affordable low-carbon future. His career path has spanned 15 years of researching quantum gravity and high energy physics at some of the world’s top research institutions, to work at Lawrence Berkeley National Laboratory and UC Berkeley, to an AAAS fellowship with the Department of Energy, and finally to a personal transition to climate and energy policy. Eric is currently a Senior Fellow with Energy Innovation: an energy and environmental consulting NGO. His interests and writing cover everything from residential energy management systems to large grids and wholesale electricity markets.

On Twitter: @EricGimon

On the Web: Eric’s writing on Power Sector Transformation at Energy Innovation

Recording date: September 15, 2021

Air date: October 13, 2021

Geek rating: 10