Electricity Markets in Transition

Electricity markets worldwide are undergoing a many-decade transition in the way electricity is generated and consumed. The success of this transition depends critically on climate policy and market design. The authors of the paper presented in this Virtual Market Design Seminar model PJM — perhaps the largest and most advanced electricity market in the world — to evaluate the impact of alternative policies on electricity market outcomes over the next 40 years, including costs, profits, social welfare, risks, and reliability. Each year, investors decide which resources enter and exitgiven forward-looking consistent expectations about energy rents, prices and costs.

The seminar series is jointly organized by ZEW, the University Paris 2 Panthéon-Assas, the Karlsruhe Institute of Technology (KIT), and the Universities of Bonn and Mannheim. Additional information on the Virtual MD Seminar Series.