As renewable energy deployment accelerates across the world, pioneering regions like Europe are already seeing more negative prices in wholesale power markets. As renewable penetration continues to rise, this downward price trend is putting pressure on not just renewable generators but also gas, coal, nuclear and other technologies operating in and relying on revenues from organized markets. How will power market players make money in a market with depressed wholesale prices? Is the deregulated power market construct compatible with a decarbonized grid dominated by zero marginal cost resources? What market reforms have been proposed to meet these new challenges?
One of COP28’s big breakthroughs was a pledge to triple global renewable energy capacity by 2030. But reaching this ambitious goal will require new policies and a significant ramp up in investments. It will also require accelerating deployment across both mature markets such as China, Europe and North America as well as the “Global South,” which have substantially different advantages and challenges. How achievable is this goal for different governments? What are the main obstacles in key markets? What can be done to get the world closer to this “tripling” goal?