{"query_echo":{"q":"","filters":{"analysis_type":["market design assessment"]},"warnings":[{"code":"facet_value_not_in_vocabulary","message":"Value 'market design assessment' for facet 'analysis_type' is not in the controlled vocabulary."}]},"total":{"value":5,"relation":"eq"},"page":1,"page_size":20,"self":"https://climateinsightsdirectory.org/api/v1/search?analysis_type=market+design+assessment","stability":"beta","ai_marking":{"digital_source_type":{"uri":"http://cv.iptc.org/newscodes/digitalsourcetype/trainedAlgorithmicMedia","name":"Created using Generative AI"},"notice":"Summary and key insights are generated using artificial intelligence."},"results":[{"id":"catf-001203","url":"https://climateinsightsdirectory.org/document/catf-001203","title":"State-Led Planning, Development, and Procurement","publisher":{"name":"Clean Air Task Force","organization":"clean-air-task-force"},"document_type":"report","language":"en","date_published":"2026-09","source_url":"https://cdn.catf.us/wp-content/uploads/2026/09/15140516/State-Led-Planning-Report.pdf","generator":"Climate Insights Directory","generated_fields":["summary","key_insights","climate_tags","geography_discussed","analysis_type"],"summary":{"text":"The report identifies a 'planning gap' in deregulated U.S. power markets where short-term wholesale price signals and Clean Electricity Standards (CES) fail to incentivize long-lead time, capital-intensive technologies like nuclear, geothermal, and long-duration energy storage. To address this, the authors propose a 'hybrid market' approach called state-led planning, which consists of three core components: system needs assessments, technology development roadmaps, and state-led procurement. This framework allows states to provide the long-term revenue certainty required by investors while maintaining the operational efficiencies of competitive wholesale markets. The report highlights Illinois's Clean and Reliable Grid Affordability Act as a primary example of this approach in practice and discusses the role of FERC Order 1920 in improving regional transmission planning.","ai_generated":true,"unit":"catf-001203#summary","date_modified":"2026-10-23"},"key_insights":[{"text":"Wholesale electricity markets in the U.S. are structurally limited by short-term price signals, with energy futures typically liquid only two to four years forward and capacity markets providing signals as short as one month to three years. This mismatch creates a lack of 'bankability' for long-lived infrastructure assets that require credible revenue signals over decades.","ai_generated":true,"unit":"catf-001203#insight-1","date_modified":"2026-10-23"},{"text":"While Clean Electricity Standards (CES) have successfully driven solar and wind deployment, they are insufficient for full decarbonization because they reward the lowest-cost qualifying energy in near-term compliance periods. Consequently, they do not provide the necessary signals for 'clean firm generation' or long-duration energy storage, nor do they address non-cost development barriers.","ai_generated":true,"unit":"catf-001203#insight-2","date_modified":"2026-10-23"},{"text":"State-led planning is proposed as a 'hybrid market' structure that integrates three key elements: periodic scenario-based system needs assessments, technology development roadmaps to resolve non-revenue barriers (such as siting and permitting), and state-mandated or direct procurement to provide revenue certainty for long-lead assets.","ai_generated":true,"unit":"catf-001203#insight-3","date_modified":"2026-10-23"},{"text":"FERC Order 1920 improves regional transmission planning by requiring providers to consider state laws and policy goals, but it is not a complete solution. States still need their own planning capacity to ensure that the benefits of clean energy are correctly calculated and that necessary infrastructure is actually prioritized and built.","ai_generated":true,"unit":"catf-001203#insight-4","date_modified":"2026-10-23"}],"climate_tags":["electricity market","nuclear power","geothermal energy","offshore wind power","energy storage","electric power transmission","decarbonization","Resource adequacy","power purchase agreement"],"geography_discussed":["California","New York","Illinois"],"frame_perspective":[],"analysis_type":["policy analysis","market design assessment"]},{"id":"sei-002437","url":"https://climateinsightsdirectory.org/document/sei-002437","title":"CAMBIOS REGULATORIOS, DE PLANIFICACIÓN Y DE MERCADO para acelerar el despliegue de energías renovables no convencionales en Colombia","publisher":{"name":"Stockholm Environment Institute","organization":"stockholm-environment-institute"},"document_type":"report","language":"es","date_published":"2026","source_url":"https://www.sei.org/wp-content/uploads/2026/06/reporte-cambios-regulatorios-junio2026-uk-pact.pdf","generator":"Climate Insights Directory","generated_fields":["summary","key_insights","climate_tags","geography_discussed","analysis_type"],"summary":{"text":"The report argues that Colombia's electrical framework is outdated, designed for a hydro-thermal system and creating barriers to the integration of solar and wind energy. It proposes a structural shift toward a 'energy plus attributes' model, where systemic services like inertia and voltage control are explicitly valued. Key recommendations include reforming the reliability charge (Cargo por Confiabilidad), optimizing transmission capacity allocation to prevent 'hoarding', and transitioning to a more proactive planning role for the UPME. Technical evidence suggests Colombia could operate with over 95% renewable energy by 2038 if these regulatory and market bottlenecks are resolved.","ai_generated":true,"unit":"sei-002437#summary","date_modified":"2026-10-23"},"key_insights":[{"text":"Colombia's current electrical framework is based on a hydro-thermal paradigm that does not account for non-conventional renewable energy sources (FNCER) with near-zero marginal costs and higher variability.","ai_generated":true,"unit":"sei-002437#insight-1","date_modified":"2026-10-23"},{"text":"There is a significant gap between the number of FNCER projects with assigned transmission capacity and those actually entering commercial operation; as of November 2025, approximately 65% of analyzed projects failed to meet construction milestones.","ai_generated":true,"unit":"sei-002437#insight-2","date_modified":"2026-10-23"},{"text":"Technical evidence indicates that Colombia could achieve a renewable energy share exceeding 95% by 2038, requiring approximately 15 GW of additional solar and wind capacity over the next decade.","ai_generated":true,"unit":"sei-002437#insight-3","date_modified":"2026-10-23"},{"text":"The current reliability charge (Cargo por Confiabilidad) is outdated, with approximately 36% of the Firm Energy for the Reliability Charge (ENFICC) provided by plants that have been in operation for 35 years or more.","ai_generated":true,"unit":"sei-002437#insight-4","date_modified":"2026-10-23"},{"text":"The system lacks a regulatory framework to value and remunerate essential dynamic stability attributes—such as inertia and frequency control—which were previously implicit in synchronous generation but are critical for inverter-based resources.","ai_generated":true,"unit":"sei-002437#insight-5","date_modified":"2026-10-23"},{"text":"Transmission network capacity is under structural pressure, with recent assignment requests reaching three to four times the system's net effective generation capacity of approximately 21.4 GW.","ai_generated":true,"unit":"sei-002437#insight-6","date_modified":"2026-10-23"},{"text":"The report recommends transitioning from price-based offers to cost-based centralized dispatch for hydroelectric resources, similar to models in Brazil and Uruguay, to optimize water use as a strategic flexibility tool.","ai_generated":true,"unit":"sei-002437#insight-7","date_modified":"2026-10-23"},{"text":"Long-term contracting for FNCER is hindered by rigid hourly obligations that transform financial hedges into physical commitments, increasing capital costs and reducing bankability.","ai_generated":true,"unit":"sei-002437#insight-8","date_modified":"2026-10-23"},{"text":"The UPME's planning role has been predominantly indicative for generation, creating a disconnect between strategic expansion signals and actual investment materialization.","ai_generated":true,"unit":"sei-002437#insight-9","date_modified":"2026-10-23"},{"text":"The report proposes the use of synchronous condensers and the reconversion of retiring coal plants to maintain system stability during the energy transition.","ai_generated":true,"unit":"sei-002437#insight-10","date_modified":"2026-10-23"}],"climate_tags":["solar energy","wind power","energy transition","climate finance","power purchase agreement","electric power transmission","hydroelectricity","decarbonization"],"geography_discussed":["Brazil","Uruguay","Caribbean","Maicao","Santa Marta"],"frame_perspective":[],"analysis_type":["regulatory analysis","market design assessment","technical feasibility study","policy recommendation"]},{"id":"catf-000836","url":"https://climateinsightsdirectory.org/document/catf-000836","title":"Accelerating the deployment of clean power technologies to reliably decarbonise Europe through enhanced planning and contracting mechanisms","publisher":{"name":"Clean Air Task Force","organization":"clean-air-task-force"},"document_type":"report","language":"en","date_published":"2025-06","source_url":"https://cdn.catf.us/wp-content/uploads/2025/06/24081828/clean-power-tech-decarbonise-europe-planning-contracting.pdf?_gl=1%2A16hu23k%2A_ga%2AR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEuR0ExLjEu%2A_ga_88025VJ2M0%2AczE3NTYxMDkyMDgkbzIwNiRnMSR0MTc1NjEwOTIxMSRqNTckbDAkaDE5MzM3MTkzODc","generator":"Climate Insights Directory","generated_fields":["summary","key_insights","climate_tags","geography_discussed","analysis_type"],"summary":{"text":"The report argues for a 'hybrid market model' in Europe that combines proactive procurement for the market with competition in the market to ensure a reliable, 24/7 decarbonised power system. It identifies significant gaps in current National Energy and Climate Plans (NECPs), noting that many Member States are not on track to meet 2030 EU targets. To address this, the authors recommend expanding system needs assessments to include flexibility and resilience (including climate and cyber risks) and extending their time horizon to 2050. On the contracting side, the report suggests enhancing Power Purchase Agreements (PPAs) through standardisation and public demand, and improving Contracts for Difference (CfDs) by embedding dispatch incentives to avoid distorting market signals. It also proposes a tripartite contracting framework involving a central public entity to hedge risks for both the state and industrial consumers, thereby fostering industrial electrification and competitiveness.","ai_generated":true,"unit":"catf-000836#summary","date_modified":"2026-10-23"},"key_insights":[{"text":"The European power sector requires a 'hybrid market model' that integrates 'proactive and competitive procurement ‘for’ the market with investment efficiency and competition ‘in’ the market' to achieve 24/7 decarbonised power.","ai_generated":true,"unit":"catf-000836#insight-1","date_modified":"2026-10-23"},{"text":"Current National Energy and Climate Plans (NECPs) are insufficient to meet EU 2030 goals; 16 out of 27 Member States have pledged renewable shares below the EU's formulaic benchmark, with France and Germany pledging -9 and -3 percentage points below the benchmark respectively.","ai_generated":true,"unit":"catf-000836#insight-2","date_modified":"2026-10-23"},{"text":"System needs assessments should be expanded to include 'resilience' against climate change and security threats, and their time horizon should be extended to 2050 to align with decarbonisation goals and infrastructure lifetimes.","ai_generated":true,"unit":"catf-000836#insight-3","date_modified":"2026-10-23"},{"text":"To scale up voluntary Power Purchase Agreements (PPAs), the report recommends standardising contracts, stimulating demand via public electricity consumption (e.g., schools and government buildings), and developing shaping products to mitigate profile risks.","ai_generated":true,"unit":"catf-000836#insight-4","date_modified":"2026-10-23"},{"text":"Traditional two-sided Contracts for Difference (CfDs) can distort dispatch incentives and drain liquidity from non-day-ahead markets; the report suggests 'capability-based' or 'profile-based' CfDs to ensure generators are exposed to market price signals.","ai_generated":true,"unit":"catf-000836#insight-5","date_modified":"2026-10-23"},{"text":"Capacity Remuneration Mechanisms (CRMs) should evolve into regional mechanisms that are technology-neutral and properly de-rate resources to reflect their actual contribution to system adequacy.","ai_generated":true,"unit":"catf-000836#insight-6","date_modified":"2026-10-23"},{"text":"A proposed tripartite contracting framework involving a central public entity could issue CfDs upstream to generators and long-term contracts (PPAs or forwards) downstream to consumers, helping to hedge state budget exposure and unlock industrial electrification.","ai_generated":true,"unit":"catf-000836#insight-7","date_modified":"2026-10-23"},{"text":"European power grids require brown- and greenfield investments totaling €584 billion through 2030, including a need to double the EU’s interconnector capacity.","ai_generated":true,"unit":"catf-000836#insight-8","date_modified":"2026-10-23"}],"climate_tags":["decarbonization","nuclear power","geothermal energy","energy storage","demand response","power purchase agreement","Industrial decarbonization","energy security","climate resilience","green hydrogen","offshore wind power","photovoltaics"],"geography_discussed":["France","Germany","Spain","Belgium","Netherlands","Sweden","Norway","United Kingdom","Australia","Italy","New York","Ontario","South Africa","People's Republic of China"],"frame_perspective":[],"analysis_type":["policy analysis","market design assessment","strategic recommendations"]},{"id":"rmi-000497","url":"https://climateinsightsdirectory.org/document/rmi-000497","title":"Scaling Clean: Assessing Market Options for Clean Energy and Capacity in PJM","publisher":{"name":"RMI","organization":"rmi"},"document_type":"report","language":"en","date_published":"2022-03-08","source_url":"https://rmi.org/resources/assessing-market-options-for-clean-energy-and-capacity-in-pjm/","generator":"Climate Insights Directory","generated_fields":["summary","key_insights","climate_tags","geography_discussed","analysis_type"],"summary":{"text":"The report examines the role of carbon-free energy in the PJM market and evaluates two proposed market designs—the Forward Clean Energy Market and the Integrated Clean Capacity Market—to improve the integration of clean resources. It argues that accurately accounting for the capacity value of clean energy reduces costs and emissions, and suggests that a regional, standardized clean energy procurement process could accelerate the retirement of fossil assets and the deployment of clean energy.","ai_generated":true,"unit":"rmi-000497#summary","date_modified":"2026-10-23"},"key_insights":[{"text":"Accurately accounting for the capacity value of clean energy resources leads to lower costs and a reduction in emissions.","ai_generated":true,"unit":"rmi-000497#insight-1","date_modified":"2026-10-23"},{"text":"The two proposed market designs (Forward Clean Energy Market and Integrated Clean Capacity Market) and the current status quo would yield the same 'optimal' results if all market participants correctly account for the capacity value of clean resources.","ai_generated":true,"unit":"rmi-000497#insight-2","date_modified":"2026-10-23"},{"text":"State carve-out policies, such as those targeting specific technologies or in-state generation, have significant implications for emissions and costs that must be weighed against their benefits.","ai_generated":true,"unit":"rmi-000497#insight-3","date_modified":"2026-10-23"},{"text":"The deployment of clean energy and the retirement of fossil assets would be accelerated if a centralized clean energy market attracted more voluntary demand from new buyers.","ai_generated":true,"unit":"rmi-000497#insight-4","date_modified":"2026-10-23"}],"climate_tags":["renewable electricity","decarbonization","power purchase agreement"],"geography_discussed":["United States"],"frame_perspective":[],"analysis_type":["market design assessment","policy recommendation"]},{"id":"eninnova-000171","url":"https://climateinsightsdirectory.org/document/eninnova-000171","title":"WHOLESALE ELECTRICITY MARKET DESIGN FOR RAPID DECARBONIZATION: VISIONS FOR THE FUTURE","publisher":{"name":"Energy Innovation","organization":"energy-innovation"},"document_type":"research paper","language":"en","date_published":"2019-06","source_url":"https://energyinnovation.org/wp-content/uploads/Wholesale-Electricity-Market-Design-For-Rapid-Decarbonization-Visions-For-The-Future_updated.pdf","generator":"Climate Insights Directory","generated_fields":["summary","key_insights","climate_tags","geography_discussed","analysis_type"],"summary":{"text":"The paper argues that current wholesale electricity markets, designed for large fuel-burning plants with high production costs, are ill-equipped for a future dominated by wind, solar, and storage, which have near-zero production costs and different operational characteristics. It identifies a disconnect between federal wholesale rates and state retail rates as a barrier to demand-side flexibility. The authors propose ten principles for modern markets—including technology neutrality, grid reliability, and long-run efficiency—and outline two emerging pathways for reform: a \"Robust Spot Market\" approach focusing on decentralized bilateral contracting, and a \"Long-Term Plus Short-Term Markets\" approach utilizing a centralized forward market.","ai_generated":true,"unit":"eninnova-000171#summary","date_modified":"2026-10-23"},"key_insights":[{"text":"Existing wholesale electricity markets were designed around a 'marginal cost dispatch' paradigm where prices and revenues are tied to the production costs of large central station plants, primarily fuel-burning resources.","ai_generated":true,"unit":"eninnova-000171#insight-1","date_modified":"2026-10-23"},{"text":"Zero-carbon resources like wind, solar, and storage differ from traditional thermal plants in three key ways: they have near-zero production costs, smaller unit sizes allowing for faster deployment, and production characteristics tied to resource availability rather than dispatchability.","ai_generated":true,"unit":"eninnova-000171#insight-2","date_modified":"2026-10-23"},{"text":"A regulatory split between the Federal Energy Regulatory Commission (FERC), which governs wholesale rates, and state regulators, who govern retail rates, prevents wholesale price signals from reaching demand-side resources.","ai_generated":true,"unit":"eninnova-000171#insight-3","date_modified":"2026-10-23"},{"text":"The authors propose ten principles for modern wholesale electricity markets to ensure technology neutrality and least-cost system goals, including the need to accommodate rapid decarbonization, support grid reliability, and facilitate demand-side participation.","ai_generated":true,"unit":"eninnova-000171#insight-4","date_modified":"2026-10-23"},{"text":"Two primary pathways for market evolution are identified: the \"Robust Spot Market\" pathway, which emphasizes decentralized bilateral contracting and the elimination of capacity markets, and the \"Long-Term Plus Short-Term Markets\" pathway, which suggests a centralized forward market to complement energy and services markets.","ai_generated":true,"unit":"eninnova-000171#insight-5","date_modified":"2026-10-23"},{"text":"Current U.S. capacity markets are viewed as flawed because they trade capacity without sufficient regard for the specific operational characteristics of the energy resources.","ai_generated":true,"unit":"eninnova-000171#insight-6","date_modified":"2026-10-23"}],"climate_tags":["decarbonization","wind power","solar energy","energy storage","Demand flexibility","Power system reliability"],"geography_discussed":["California","Hawaii","New Mexico","Washington, D.C.","Australia"],"frame_perspective":[],"analysis_type":["policy analysis","market design assessment"]}]}