Market Design
Analysis Group frequently provides corporate clients advice on market structure and design issues including transmission access and pricing policies; market monitoring approaches; design of markets for energy, capacity, and ancillary services; alignment of retail and wholesale market designs; design of emissions allowance markets; and codes of conduct.
We also serve regulatory clients, for whom we have helped design market rules for wholesale electricity suppliers and assessed “best practices” in the design and implementation of competitive procurement protocols for states and utilities.
Recent market design engagements have included:
- Performance of cost/benefit analyses of various regions’ adoption of competitive wholesale markets
- Assessment of the competitive implications of auction designs and affiliate transactions
- Evaluation of retail and wholesale competitive market performance in a region that restructured its electricity industry
- Review of market monitoring and mitigation policies and practices of select Regional Transmissions Organizations (RTOs)
- Comparative performance evaluation of single-clearing price versus pay-as-bid competitive market designs
Our market design work also has included developing an innovative energy auction proposal to assuage concerns about alleged wholesale market power, conducting a retrospective analysis of the performance of a regional transmission organization (RTO), and assessing the performance of an RTO in administering markets.
Our work with comprehensive commitment and dispatch models for generating resources has given us a detailed understanding of wholesale pricing structures, subject to transmission constraints and contingencies. We also have quantified benefits from industry restructuring.
Analysis Group also advises clients on competitive issues in the electricity and natural gas markets.