Analysis of resource adequacy constructs in the US and Australia and future paths forward
Deregulation of the electricity industry has altered the investment landscape for new resources. Multiple resource adequacy constructs are in use today around the world and represent diverging opinions of how much interaction regulators should have on the procurement of new resources. The report compares the resource adequacy constructs in Australia, Texas, California and the Northeast of the United States and discusses the future of resource adequacy. The report concludes that a hybridized construct that blends the high offer caps of energy-only markets, the prescriptive nature of resources in capacity markets and a strong price-responsive demand will likely be the future of resource adequacy.