Press Release


London Economics Managing Director weighs in on effectiveness of capacity markets

London Economics International LLC’s Managing Director, Julia Frayer, joins a panel of distinguished capacity market experts to discuss “what works, what doesn’t, and who is responsible” for ensuring electricity capacity of the future.

As baseload capacity retires, intermittent resources are added, and more generation becomes part of the distribution system, there’s real concern about how to best ensure the generating capacity for customers is available on a 24/7/365 basis. On top of this huge transition, there are highly divergent approaches to ensuring that capacity is adequate, with widely different costs at different times. As we enter this new era, which one(s) will work best to ensure reliability at a reasonable cost, and send the right price signals at the wholesale and retail levels?

The webinar, hosted by the US Association for Energy Economics, will provide cross-cutting perspectives on key issues such as:

  • Where is the line between state and FERC/RTO responsibility?
  • How should we treat variable wind and solar in a capacity market?
  • Would greater interregional transmission capacity help?
  • What role should the demand side play in ensuring adequate capacity?
  • Capacity auctions vs the Texas model – can both ensure adequacy when supplies get tight?
  • Will the transition to digitized, smart power system controls and monitors help or hurt?

The webinar takes place on July 8, 2020. More information including a registration link can be found at: