Electricity Wholesale Market Design in a Low Carbon Future

This chapter discusses the difficulties associated with deploying renewable electricity over large scale electricity markets. It considers such issues as electricity system design, transmission networks, and the development of smart grids. There is great uncertainty about the appropriate investments and a consensus that achieving a low carbon future will require innovation and invention. Success is more likely if appropriate price signals and incentives appear to drive decentralized decisions of the many participants in electricity markets. This requires special emphasis on the interaction between wholesale market design and innovation with renewable energy and other low carbon technologies.