On May 28 and 29, PESD Director Frank Wolak and Graduate Student Nils Angliviel de La Beaumelle conducted a workshop at the Commission de régulation de l’énergie in Paris, France.

The goal of the workshop was to give participants hands-on experience with the principles underlying wholesale electricity market operation with a focus on concepts that are relevant to achieving long-term resource adequacy in a market with high shares of intermittent renewable energy. Participants learned about the following using PESD's Energy Market Game: (1) the exercise of unilateral market power by gencos in regions with and without transmission constraints, (2) incentives for genco offer behavior under uniform-price versus pay-as-bid auctions, (3) how fixed-price forward contracts for energy change the incentives of generation unit owners to exercise unilateral market power in the short-term market, (4) the impact of intermittent renewable energy on supplier behavior and market outcomes, (5) the long-term resource adequacy challenges created by high shares of intermittent renewable energy in wholesale market, and (5) the relative effectiveness of different approaches to ensuring long-term resource adequacy and reasonable short-term prices in a wholesale electricity market with and without a genco that has a large market share.