Decarbonizing Electricity Markets: Challenges and Profitability

The chapter explores the complexities of using markets for decarbonizing electricity, highlighting the challenges of profitability in renewable energy under spot markets with merit order dispatch. The conversation emphasizes the importance of profit in driving investment decisions in the private sector and discusses how declining generation costs may not always translate to profitability in the electricity market. Additionally, it touches on the concept of deregulation in the electricity market and the introduction of privatization and competition through unbundling generators from other utilities.