Australia’s National Electricity Market: An Analysis of the Reform Experience 1998–2021

Why the sustainable provision of low-carbon electricity needs hybrid markets

“…In Texas for instance, administered scarcity price adders do improve on short-term market and investment efficiency, but fall short of ensuring adequate long-term reliability investment (Zarnikau et al, 2020;Bajo-Buenestado, 2021). In Australia, predicted shortfalls in generation due to the national market's limited performance in ensuring capacity investment led to the introduction of a retailer reliability obligation, which is triggered if the market operator forecasts a generation gap (Simshauser, 2019(Simshauser, , 2021. Finally, in Alberta, some missing money and price manipulation problems still exist today (Brown and Olmstead, 2017) and a capacity market was even considered for a time (Brown, 2018).…”