An expert in electricity markets explains why market price signals alone will struggle to incentivize adequate investment in the flexible electricity resources needed for future grid reliability.

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In the 1990s the process of deregulation – or restructuring – of the U.S. electricity system began, leading to the introduction of competition to an industry that had for a century been dominated by vertically-integrated utility monopolies. Today, competitive markets produce two-thirds of the electricity consumed in the country. Yet concern has grown that these modern markets may not be up to the task of driving the types of investment needed to ensure that an ample and reliable supply of clean electricity will be available in the future.

Kelli Joseph, a senior fellow with the Kleinman Center, offers a deep dive into the theory of competitive electricity markets and the role that market price signals play in driving investment in many parts of the United States. She explores the need to incentivize investment in flexible resources essential to the reliability of a grid that is increasingly reliant on natural gas and renewable generation, and discusses how electricity markets and policy might meet the challenges of the energy transition.

Kelli Joseph is a senior fellow with the Kleinman Center for Energy Policy.

Related Content

The Key to Electric Grid Reliability: Modernizing Governance https://kleinmanenergy.upenn.edu/research/publications/the-key-to-electric-grid-reliability-modernizing-governance/ 

Coordinated Policy and Targeted Investment for and Orderly and Reliable Energy Transition https://kleinmanenergy.upenn.edu/research/publications/coordinated-policy-and-targeted-investment-for-an-orderly-and-reliable-energy-transition/ 

Aligning Clean Energy Policy with Grid Reliability https://kleinmanenergy.upenn.edu/podcast/aligning-clean-energy-policy-with-grid-reliability/



Energy Policy Now is produced by The Kleinman Center for Energy Policy at the University of Pennsylvania. For all things energy policy, visit kleinmanenergy.upenn.edu

An expert in electricity markets explains why market price signals alone will struggle to incentivize adequate investment in the flexible electricity resources needed for future grid reliability.
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In the 1990s the process of deregulation – or restructuring – of the U.S. electricity system began, leading to the introduction of competition to an industry that had for a century been dominated by vertically-integrated utility monopolies. Today, competitive markets produce two-thirds of the electricity consumed in the country. Yet concern has grown that these modern markets may not be up to the task of driving the types of investment needed to ensure that an ample and reliable supply of clean electricity will be available in the future.
Kelli Joseph, a senior fellow with the Kleinman Center, offers a deep dive into the theory of competitive electricity markets and the role that market price signals play in driving investment in many parts of the United States. She explores the need to incentivize investment in flexible resources essential to the reliability of a grid that is increasingly reliant on natural gas and renewable generation, and discusses how electricity markets and policy might meet the challenges of the energy transition.
Kelli Joseph is a senior fellow with the Kleinman Center for Energy Policy.
Related Content
The Key to Electric Grid Reliability: Modernizing Governance <a href="https://kleinmanenergy.upenn.edu/research/publications/the-key-to-electric-grid-reliability-modernizing-governance/">https://kleinmanenergy.upenn.edu/research/publications/the-key-to-electric-grid-reliability-modernizing-governance/ </a>
Coordinated Policy and Targeted Investment for and Orderly and Reliable Energy Transition <a href="https://kleinmanenergy.upenn.edu/research/publications/coordinated-policy-and-targeted-investment-for-an-orderly-and-reliable-energy-transition/">https://kleinmanenergy.upenn.edu/research/publications/coordinated-policy-and-targeted-investment-for-an-orderly-and-reliable-energy-transition/ </a>
Aligning Clean Energy Policy with Grid Reliability <a href="https://kleinmanenergy.upenn.edu/podcast/aligning-clean-energy-policy-with-grid-reliability/">https://kleinmanenergy.upenn.edu/podcast/aligning-clean-energy-policy-with-grid-reliability/</a>
 
Energy Policy Now is produced by <a href="http://kleinmanenergy.upenn.edu/">The Kleinman Center for Energy Policy</a> at the University of Pennsylvania. For all things energy policy, visit <a href="http://kleinmanenergy.upenn.edu/">kleinmanenergy.upenn.edu</a>

Energy Policy Now offers clear talk on the policy issues that define our relationship to energy and its impact on society and the environment. The series is produced by the Kleinman Center for Energy Policy at the University of Pennsylvania and hosted by energy journalist Andy Stone. Join Andy in conversation with leaders from industry, government, and academia as they shed light on today's pressing energy policy debates.

Energy Policy Now

Energy Policy Now offers clear talk on the policy issues that define our relationship to energy and its impact on society and the environment. The series is produced by <a href="https://kleinmanenergy.upenn.edu/podcast/">the Kleinman Center for Energy Policy</a> at the University of Pennsylvania and hosted by energy journalist Andy Stone. Join Andy in conversation with leaders from industry, government, and academia as they shed light on today's pressing energy policy debates.

An expert in electricity markets explains why market price signals alone will struggle to incentivize adequate investment in the flexible electricity resources needed for future grid reliability.

Can Competitive Electricity Markets Deliver Reliable Power?

Byzantine governance structures and vested interests are slowing the greening of the U.S. electrical grid. Two grid policy experts discuss paths forward.

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The U.S. electrical grid faces declining reliability, often attributed to a rapidly evolving energy mix, surging demand, and more frequent severe weather. Yet a deeper issue lies in the fragmented governance of the grid, where conflicting visions from federal, state, and industry-level regulators hinder progress toward a clean and reliable energy future.

Shelley Welton of the Kleinman Center and Joshua Macey of Yale Law School examine the tangled web of grid governance in the U.S., and highlight inherent conflicts of interest and clashes between state and federal regulatory priorities. They also explore potential pathways for governance reform.

Shelley Welton is Presidential Distinguished Professor of Law and Energy Policy with the Kleinman Center and Penn Carey Law School at the University of Pennsylvania.

Joshua Macey is an associate professor of Law at Yale Law School.

Related Content:

The Key to Electric Grid Reliability: Modernizing Governance https://kleinmanenergy.upenn.edu/research/publications/the-key-to-electric-grid-reliability-modernizing-governance/

How Can We Improve the Efficiency of Electricity Pricing Systems? https://kleinmanenergy.upenn.edu/research/publications/how-can-we-improve-the-efficiency-of-electricity-pricing-systems/

Energy Policy Now is produced by The Kleinman Center for Energy Policy at the University of Pennsylvania. For all things energy policy, visit kleinmanenergy.upenn.edu

Byzantine governance structures and vested interests are slowing the greening of the U.S. electrical grid. Two grid policy experts discuss paths forward.
---
The U.S. electrical grid faces declining reliability, often attributed to a rapidly evolving energy mix, surging demand, and more frequent severe weather. Yet a deeper issue lies in the fragmented governance of the grid, where conflicting visions from federal, state, and industry-level regulators hinder progress toward a clean and reliable energy future.
Shelley Welton of the Kleinman Center and Joshua Macey of Yale Law School examine the tangled web of grid governance in the U.S., and highlight inherent conflicts of interest and clashes between state and federal regulatory priorities. They also explore potential pathways for governance reform.
Shelley Welton is Presidential Distinguished Professor of Law and Energy Policy with the Kleinman Center and Penn Carey Law School at the University of Pennsylvania.
Joshua Macey is an associate professor of Law at Yale Law School.
Related Content:
The Key to Electric Grid Reliability: Modernizing Governance <a href="https://kleinmanenergy.upenn.edu/research/publications/the-key-to-electric-grid-reliability-modernizing-governance/">https://kleinmanenergy.upenn.edu/research/publications/the-key-to-electric-grid-reliability-modernizing-governance/</a>
How Can We Improve the Efficiency of Electricity Pricing Systems? <a href="https://kleinmanenergy.upenn.edu/research/publications/how-can-we-improve-the-efficiency-of-electricity-pricing-systems/">https://kleinmanenergy.upenn.edu/research/publications/how-can-we-improve-the-efficiency-of-electricity-pricing-systems/</a>
Energy Policy Now is produced by The Kleinman Center for Energy Policy at the University of Pennsylvania. For all things energy policy, visit kleinmanenergy.upenn.edu

Byzantine governance structures and vested interests are slowing the greening of the U.S. electrical grid. Two grid policy experts discuss paths forward.

Why Electrical Grid Governance Needs Reforming

Carnot Prize recipient Jacqueline Patterson explores how the clean energy transition can drive meaningful progress toward energy and climate justice.

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In 2009 Jacqueline Patterson became the founding director of the NAACP’s Environmental and Climate Justice Program. It was a role that Patterson, who’s this year’s recipient of the Kleinman Center’s Carnot Prize, had expected to be short lived: she’d stay on just long enough to get the program underway.

By the time she did move on 12 years later, she had made significant progress in raising understanding of the connection between environmental damage and the lived experience in some of this country’s most impoverished and vulnerable communities. As an advocate for climate justice, she has worked to address the fact that environmental damage increases the economic and health burdens on disadvantaged communities, and makes it more challenging to break the cycle of poverty and marginalization.

Today Patterson serves as the executive director of The Chisholm Legacy Project, where her work empowers communities of color on the front lines of climate change, ensuring they have the resources, tools, and leadership to amplify their voices in policymaking. Her efforts focus on making the clean energy transition a genuine opportunity for justice and equity.

Jacqueline Patterson is executive director of The Chisholm Legacy Project and the 2024 recipient of the Kleinman Center’s Carnot Prize for distinguished contributions in the area of energy policy.

Related Content

Beyond Labor: The Expanding Scope of the Just Energy Transitionhttps://kleinmanenergy.upenn.edu/commentary/podcast/beyond-labor-the-expanding-scope-of-the-just-energy-transition/

Should ‘Energy Hogs’ Shoulder More of the Utility Cost Burden? Should ‘Energy Hogs’ Shoulder More of the Utility Cost Burden? https://kleinmanenergy.upenn.edu/research/publications/should-energy-hogs-shoulder-more-of-the-utility-cost-burden/



Energy Policy Now is produced by The Kleinman Center for Energy Policy at the University of Pennsylvania. For all things energy policy, visit kleinmanenergy.upenn.edu

Carnot Prize recipient Jacqueline Patterson explores how the clean energy transition can drive meaningful progress toward energy and climate justice.
---
In 2009 Jacqueline Patterson became the founding director of the NAACP’s Environmental and Climate Justice Program. It was a role that Patterson, who’s this year’s recipient of the Kleinman Center’s Carnot Prize, had expected to be short lived: she’d stay on just long enough to get the program underway.
By the time she did move on 12 years later, she had made significant progress in raising understanding of the connection between environmental damage and the lived experience in some of this country’s most impoverished and vulnerable communities. As an advocate for climate justice, she has worked to address the fact that environmental damage increases the economic and health burdens on disadvantaged communities, and makes it more challenging to break the cycle of poverty and marginalization.
Today Patterson serves as the executive director of The Chisholm Legacy Project, where her work empowers communities of color on the front lines of climate change, ensuring they have the resources, tools, and leadership to amplify their voices in policymaking. Her efforts focus on making the clean energy transition a genuine opportunity for justice and equity.
Jacqueline Patterson is executive director of The Chisholm Legacy Project and the 2024 recipient of the Kleinman Center’s Carnot Prize for distinguished contributions in the area of energy policy.
Related Content
<a href="https://kleinmanenergy.upenn.edu/commentary/podcast/beyond-labor-the-expanding-scope-of-the-just-energy-transition/">Beyond Labor: The Expanding Scope of the Just Energy Transition</a> <a href="https://kleinmanenergy.upenn.edu/commentary/podcast/beyond-labor-the-expanding-scope-of-the-just-energy-transition/">https://kleinmanenergy.upenn.edu/commentary/podcast/beyond-labor-the-expanding-scope-of-the-just-energy-transition/</a>
<a href="https://kleinmanenergy.upenn.edu/research/publications/should-energy-hogs-shoulder-more-of-the-utility-cost-burden/">Should ‘Energy Hogs’ Shoulder More of the Utility Cost Burden? Should ‘Energy Hogs’ Shoulder More of the Utility Cost Burden? </a> <a href="https://kleinmanenergy.upenn.edu/research/publications/should-energy-hogs-shoulder-more-of-the-utility-cost-burden/">https://kleinmanenergy.upenn.edu/research/publications/should-energy-hogs-shoulder-more-of-the-utility-cost-burden/</a>
 
Energy Policy Now is produced by <a href="http://kleinmanenergy.upenn.edu/">The Kleinman Center for Energy Policy</a> at the University of Pennsylvania. For all things energy policy, visit <a href="http://kleinmanenergy.upenn.edu/">kleinmanenergy.upenn.edu</a>

2024 Carnot Prize winner Jacqui Patterson explores how the clean energy transition can drive meaningful progress toward energy and climate justice.

Empowering Communities for Climate and Energy Justice

Kleinman Center visiting scholar Kirsten Jenkins explores the concept of a just energy transition, and why it must be expanded beyond its labor roots to address broad energy system injustices.

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The term “just transition” has its roots in organized labor movements, and has traditionally referred to the idea that workers in the fossil fuel economy must find security in the green energy economy of the future as well. Yet, increasingly, this understanding of what a just transition entails is viewed as overly narrow, and failing to address broad structural realities in our energy system that, if not addressed, will perpetuate a range of social, environmental, and economic inequalities.

This lack of a common definition extends to the highest levels of the global climate effort, with the United Nations acknowledging that the perception of what a just transition entails varies from country to country, potentially impacting the outcome of just transition efforts at the local level.

Kleinman Center visiting scholar Kirsten Jenkins explores the definition of the term just transition and how varying interpretations of it might limit, or enhance efforts to address broader inequalities that are inherent in our energy system. Jenkins, who is a senior lecturer in energy, environment and society at the University of Edinburgh in Scotland, also discusses the need to expand just transition beyond its labor roots to a broader view on justice, and explores policies to put this broader view into practice.

Kirsten Jenkins is a visiting scholar at the Kleinman Center and a senior lecturer in energy, environment, and society within the School of Social and Political Sciences at the University of Edinburgh, Scotland.

Related Content

Closing the Climate Finance Gap: A Proposal for a New Green Investment Protocolhttps://kleinmanenergy.upenn.edu/research/publications/closing-the-climate-finance-gap-a-proposal-for-a-new-green-investment-protocol/

Climate Action in the Age of Great Power Rivalry: What Geopolitics Means for the Climatehttps://kleinmanenergy.upenn.edu/research/publications/climate-action-in-the-age-of-great-power-rivalry-what-geopolitics-means-for-the-climate/



Energy Policy Now is produced by The Kleinman Center for Energy Policy at the University of Pennsylvania. For all things energy policy, visit kleinmanenergy.upenn.edu

Kleinman Center visiting scholar Kirsten Jenkins explores the concept of a just energy transition, and why it must be expanded beyond its labor roots to address broad energy system injustices.
---
The term “just transition” has its roots in organized labor movements, and has traditionally referred to the idea that workers in the fossil fuel economy must find security in the green energy economy of the future as well. Yet, increasingly, this understanding of what a just transition entails is viewed as overly narrow, and failing to address broad structural realities in our energy system that, if not addressed, will perpetuate a range of social, environmental, and economic inequalities.
This lack of a common definition extends to the highest levels of the global climate effort, with the United Nations acknowledging that the perception of what a just transition entails varies from country to country, potentially impacting the outcome of just transition efforts at the local level.
Kleinman Center visiting scholar Kirsten Jenkins explores the definition of the term just transition and how varying interpretations of it might limit, or enhance efforts to address broader inequalities that are inherent in our energy system. Jenkins, who is a senior lecturer in energy, environment and society at the University of Edinburgh in Scotland, also discusses the need to expand just transition beyond its labor roots to a broader view on justice, and explores policies to put this broader view into practice.
Kirsten Jenkins is a visiting scholar at the Kleinman Center and a senior lecturer in energy, environment, and society within the School of Social and Political Sciences at the University of Edinburgh, Scotland.
Related Content
<a href="https://kleinmanenergy.upenn.edu/research/publications/closing-the-climate-finance-gap-a-proposal-for-a-new-green-investment-protocol/">Closing the Climate Finance Gap: A Proposal for a New Green Investment Protocol</a> <a href="https://kleinmanenergy.upenn.edu/research/publications/closing-the-climate-finance-gap-a-proposal-for-a-new-green-investment-protocol/">https://kleinmanenergy.upenn.edu/research/publications/closing-the-climate-finance-gap-a-proposal-for-a-new-green-investment-protocol/</a>
<a href="https://kleinmanenergy.upenn.edu/research/publications/climate-action-in-the-age-of-great-power-rivalry-what-geopolitics-means-for-the-climate/">Climate Action in the Age of Great Power Rivalry: What Geopolitics Means for the Climate</a> <a href="https://kleinmanenergy.upenn.edu/research/publications/climate-action-in-the-age-of-great-power-rivalry-what-geopolitics-means-for-the-climate/">https://kleinmanenergy.upenn.edu/research/publications/climate-action-in-the-age-of-great-power-rivalry-what-geopolitics-means-for-the-climate/</a>
 
 Energy Policy Now is produced by <a href="http://kleinmanenergy.upenn.edu/">The Kleinman Center for Energy Policy</a> at the University of Pennsylvania. For all things energy policy, visit <a href="http://kleinmanenergy.upenn.edu/">kleinmanenergy.upenn.edu</a>

Kleinman Center visiting scholar Kirsten Jenkins explores the concept of a just energy transition, and why it must be expanded beyond its labor roots to address broad energy system injustices.

Can Competitive Electricity Markets Deliver Reliable Power?

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