POLICY BRIEF: How Markets Attract Investment in Renewable Generation

March 28, 2024

Markets are the most powerful means to drive needed energy infrastructure investment in support of reliability. While state incentives attract investment in clean energy generation, markets will continue to be needed to attract the capabilities necessary to balance the system, including flexibility and responsiveness to balance the availability of wind and solar to ensure that the greener grid is also a reliable grid.

This policy brief explores the broader, comprehensive plan we are pursuing with our stakeholders to assess the changing needs of the grid and provide market designs that address those needs. Competitive electricity markets will remain essential to maintaining reliability throughout the transition to a decarbonized grid by balancing intermittent resources, and providing the innovation, flexibility, and diversity to support reliability efficiently and cost effectively.

For 25 years, competitive electricity markets have provided New Yorkers with reliable, least-cost power and our market design team has led the nation in creating market rules and structures that enhance renewables’ participation in markets, support grid reliability services, and support environmental goals. Read the brief.