EnleashedEnleashed
Fix the energy market
Draft

PJM-style Locational Marginal Pricing

A centrally optimised nodal market in which wholesale prices reflect marginal energy cost, transmission congestion and losses, supplemented by capacity and ancillary-service markets.

Solution section

Investment & Cost Recovery

How fixed costs, investment and resource adequacy are supported.

Investment & Cost Recovery

Resources can earn revenue from:

R=Renergy+Rcongestion+Rancillary+Rcapacity+Rother.R = R_{energy} + R_{congestion} + R_{ancillary} + R_{capacity} + R_{other}.

Locational prices can create geographically differentiated operating and investment signals.

A separate capacity market provides an additional adequacy revenue stream.

The architecture therefore does not rely solely on energy-market rents for full fixed-cost recovery.