Forward Clean Energy Market Design Proposal
The Massachusetts Department of Energy Resources (DOER) has released this Forward Clean Energy Market (“FCEM”) design proposal to begin the next step in achieving an implementable market proposal with our New England partners and power sector stakeholders. An FCEM is a centralized auction market that allows multiple bidders, including states and other entities, to purchase a variety of clean energy products from suppliers across New England. The market works to optimize the costs of meeting clean energy goals while providing secure revenue for clean energy developers. The discussions and analysis of an FCEM have been limited in recent months because a detailed design had not yet been put forth. Included in this design proposal today are details on what the FCEM products could be, who the buyers could include, how buyers might set their bids, how the resulting purchase prices would be determined, how the costs could be distributed, and how the new market could be administered.
This design proposal is built to capture the benefits of an FCEM and address many of the questions raised in initial discussions. To develop this proposal, the Brattle Group and Sustainable Energy Advantage (“SEA”) worked with DOER, the New England States, and other energy stakeholders to design a market that meets the needs of not only Massachusetts, but also other states while supporting the financing of new and existing clean energy resources. DOER intends to use the release of this design proposal today to initiate a new stakeholder process. DOER welcomes stakeholder review and conversation of the many complex components of this proposal. Additional efforts from DOER and the energy stakeholders will be needed to analyze, refine, and reach consensus on a design that the New England States can move forward to implementation.
DOER sought public comment on the Design Proposal and received 45 comments by February 17, 2023. These comments are provided below.
On February 3, 2023, DOER, in partnership with Sustainable Energy Advantage (SEA) and the Brattle Group, hosted a public webinar on the Forward Clean Energy Market Design Proposal.
View the recorded webinar on the Forward Clean Energy Market Design Proposal. (passcode: 2%Lw90#2)
|January 4, 2023