Transition Policy & Regulation
Subsidies, tariffs, and market design reform.
Market Redesign
With increasing VRE penetration, energy-only markets fail to provide the price signals necessary to incentivize firm capacity. Capacity markets and Contracts for Difference (CfDs) are becoming standard tools for governments to de-risk capital investment.
Interactive: Policy Impact
Adjust the parameters below to run the model based on current baseline data.
Result: Calculating...
Frequently Asked Questions
What is the missing money problem?
The situation where wholesale energy prices clear too low, too often, to allow generators to recover their fixed capital costs, threatening long-term grid reliability.