Capacity as a Commodity
A framework for a new capacity market paradigm that enables customer choice
American Clean Power is a supporter of technology neutral competitive market-based approaches and consumer choice.
This concept paper is offered as food for thought to add to the discourse on how to adapt capacity markets to account for the changing energy mix driven by consumer (either individually or as reflected in state policies) choice and their increasing desire for clean energy, and is not meant to be taken as a policy position.
The framework presents a potential competitive consumer choice model, but any region desiring to adopt such a framework would need to work out the implementation details that would likely be unique to the needs of that particular region.
This whitepaper explores:
- From Integrated Resource Plans (IRPs) to Reliability Pricing Models (RPM)
- A framework to the future
- A role for states
- Synergies with carbon reduction initiatives
- A basic example
- Capacity Attributes Tracking System (CATS) system principles