The Ontario Independent Electricity System Operator (IESO) recently began a major stakeholdering process aimed at renewing Ontario’s wholesale electricity market design. If implemented, the changes under consideration would seem to suggest a real commitment to the use of market-based mechanisms to govern the production and consumption of electricity in the future.
This Insights makes initial observations on:
• The central objective for having a market;
• The types of efficiencies achievable;
• The most promising actions; and
• Principles to guide market changes.
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Dr. Wara is the Director of the Climate and Energy Policy Program at the Stanford Woods Institute for the Environment and the Senior Director of Policy and...