GMS Contents

The course enabled the participants to acquire a hands-on understanding of important electricity market concepts, including: (i)  why wholesale electricity markets are generally cleared via uniform-price rather than pay-as-bid auctions, (ii) the operation of transmission constraints, (iii) how wind and solar affect electricity market outcomes, (iv) when suppliers have incentives to exercise unilateral market power, and (v) how fixed-price forward contracts can align supplier behavior with the policymaker’s goal of least-cost electricity supply, including when there are transmission constraints and high shares of wind and solar. The workshop was organized by ADB, ADB Institute, and Standford University Program on Energy and Sustainable Development.