Pseudo-markets of electricity

You can listen to my USAEE podcast on trials and tribulations of so-called electricity markets. With the possible exception of the ERCOT market, most so-called organized markets have been undermined over the years by divergent policies across member states. Many still call the dynamic mishmash of policies, regulations, and design changes with constant battles at regulatory agencies and courts "a market". But, when a growing share of investments and operational decisions are taken on the basis of out-of-market compensation of many forms and sources rather than price signals, it is no longer possible to talk about a competitive market. In this podcast, I will support this view and offer an alternative to pseudo-markets of today. You can find similar views expressed in this recent article by Devin Hartman in Utility Dive.

The talk is based on Net Social Cost of Electricity, a report I published in 2019. The USAEE membership may be necessary to listen to the podcast but a pdf of its text, amplified by one graphic and references, can be found here.