Energy Markets (Valuing Reliability and Resilience)
Energy markets are instrumental in ensuring affordability, reliability and resilience within the energy system. They play a pivotal role in balancing supply and demand while actively shaping market design. Prioritizing reliability ensures uninterrupted service during all system conditions, while resilience focuses on the system's ability to withstand and recover from disruptions, especially during extreme events such as storms or cyberattacks. By effectively prioritizing and integrating affordability, reliability and resilience, energy markets can create a more adaptable energy system that is better equipped to handle grid stability issues and maintain a consistent power supply.
We also explore strategies for integrating reliability and resilience into market design, emphasizing adaptive measures and risk management. Policies supporting these efforts are essential for fostering a robust energy ecosystem. To achieve this balance, energy markets need to establish mechanisms that incentivize and reward investments in grid infrastructure, advanced technologies and robust contingency plans. This encourages utilities and energy providers to proactively address potential vulnerabilities and improve the overall reliability of the grid. By linking financial incentives to performance, energy markets create a framework that promotes continuous improvement and encourages investment in the necessary infrastructure and maintenance practices to ensure a reliable energy system.
Additionally, energy markets should proactively integrate affordability measures to ensure that energy remains affordable for consumers. By implementing policies that promote cost-effective solutions, energy markets can strike a balance between reliability and affordability. Businesses within the energy market, including energy providers and utility companies, play an important role in achieving their affordability goals by adopting energy-efficient technologies, promoting competitive pricing and providing financial assistance.
Energy markets should explore ways to enhance affordability without compromising reliability or resilience. Constellation supports investments in innovations that will accelerate our clean energy future including direct air capture, clean hydrogen and small modular reactors.