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Challenges of designing markets to bring forward low marginal cost resources

Tom Edwards Senior Consultant

It is inevitable that as we move towards a net zero economy a significant proportion of the electricity generation mix will come from low marginal cost renewables resources like wind and solar. As a result, we will see periods where the wholesale price will clear near zero under the current market design, resulting in a lack of market-driven incentive to develop renewables. Senior Modeller Tom Edwards authored an insight paper on the paradox inherent in expecting the current market to ...

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