In April 2018, IHS Markit published a paper entitled “Ensuring resilient and efficient PJM electricity supply; The value of cost-effective nuclear resources in the PJM power supply portfolio.” Several clients contacted us regarding the paper, expressing a concern that it presented a number of wrong-headed, anti-market ideas, and requesting our thoughts. Here they are. read more →
This study, carried out for the Australian Energy Market Commission (AEMC), examined the structure and operational mechanisms for a range of gas markets in the US and Europe. read more →
Market Reform was engaged by the ISO/RTO Council (IRC), the umbrella group for the nine US and Canadian electricity system/market operators, to investigate the factors that drive financial investment in generation and other system resource, and how these are influenced by ISO policy/market design decisions and the revenue streams flowing out of the ISO-operated markets. This final report was presented to the IRC’s Annual Board Conference in May 2015. read more →
At the kickoff of its Gas Market Review, the Australian Energy Market Commission (AEMC) conducted a public forum in Sydney. Market Reform was invited to speak to this forum on the evolution of gas markets in other countries, and lessons that might infer for the East Coast gas markets of Australia read more →
This report was prepared for the Australian Energy Market Operator (AEMO) , and was published coincident with the launch of trading at the natural gas supply hub at Wallumbilla in early 2014. Using international experience in the evolution of energy markets as a reference, this paper discusses the key features of a successful trading market, how the market at Wallumbilla and in Eastern Australia more generally might be expected to develop, and steps that might be taken to help it along. read report →
This presentation was delivered by Dr. Larry Ruff to the 2013 annual meeting of the Association of Power Exchanges. It addresses the co-evolution of network energy markets, including the contribution that developments in electricity markets can make to ongoing development of gas markets as they take on increasingly network-like characteristics. read more →
The “US Model” of natural gas markets is based on long-term, point-to-point commercial capacity rights that reflect the physical capacity of the pipeline and are traded frequently among system users (shippers) in markets independent of the transmission system operator (TSO). When physical capacity is complex and scarce and the gas market is dynamic these rights must be continually reallocated and reconfigured, making trading difficult/illiquid and market outcomes suboptimal. read more →
Since 1999, the Australian state of Victoria has operated a natural gas spot market to both determine daily prices for natural gas and develop an optimal schedule for the market based on an LP (Linear Programming) approximation to the underlying inter-temporal nonlinear aspects of the gas flow optimization problem. This market employs a dispatch optimization model and a related market clearing model. Here we present the model employed for both the operational scheduling and price determination. read more →
Many electricity markets are now cleared using Linear Programming (LP) formulations that simultaneously determine an optimal dispatch and corresponding nodal prices, for each market dispatch interval. Although natural gas markets have traditionally operated in a very different fashion, the same basic concept can be applied. read more →
Following some significant financial defaults by participants in its markets, PJM engaged Market Reform to provide advice concerning how it could improve its management of credit risk. A benchmarking study of credit risk management practices in a range of spot electricity and other markets was also conducted. This work also helped to inform subsequent rule-making by FERC. Normally our client work is confidential, but in this instance PJM has placed it in the public domain, allowing it to be made available here.
read findings and recommendations report →
read credit comparison report →