Efforts to develop a forward clean energy market (FCEM) are active in both New England and PJM, but starting with New England: Why has this topic come about? Why are state policymakers focused on this topic of integrating markets and policy?  What are the problems they’ve been trying to solve?

Dr. Kathleen Spees, a Principal at the Brattle Group, provides answers to these questions on today’s episode.

1:50 – Introductions

4:20 – Inflation Reduction Act

6:30 – Overview of the Forward Clean Energy Market in New England:

• Why has this topic come about?
• Why are state policymakers focused on this topic of integrating markets and policy?

10:25 – The basics of the Forward Clean Energy Market concept:

• How would it be different from the other existing wholesale power markets?
• Who’s the buyer, who’s the seller?
• What product are they buying?
• Can’t states just increase their renewable portfolio standards up to 100%?  Why a new regional market?
• What makes FCEM better/worse/different/complementary to other solutions like a Carbon Tax or an Integrated Clean Capacity Market (ICCM)?
• How would EE factor into FCEM if at all?

22:30 – If an FCEM were adopted, how significant an impact would there be?

Recommended Resources:

• Briefing materials on a regional clean attribute market. It also includes references to two longer reports on the topic (see a forward clean energy market design paper and New Jersey investigation of resource adequacy alternatives)
• District of Columbia report on wholesale market reforms for achieving 100% carbon-free electricity which offers a broader overview of power market reforms for supporting clean energy transition
• To follow these activities and their progress to fruition, the places to look are:
  • In New England: States’ Visioning effort and associated report to the governors, as well as the NEPOOL Pathways process
  • In PJM: PJM Clean Attribute Procurement Senior Task Force