Zero-marginal-cost electricity market designs: lessons learned from hydro systems in Latin America might be applicable for decarbonization

Abstract

Large reductions in the cost of renewable energy technologies, particularly wind and solar, as well as various instruments used to achieve decarbonization targets (e.g., renewable mandates, renewable auctions, subsidies, and carbon pricing mechanisms) are driving the rapid growth of investments in these generation technologies worldwide.Large reductions in the cost of renewable energy technologies, particularly wind and solar, as well as various instruments used to achieve decarbonization targets (e.g., renewable mandates, renewable auctions, subsidies, and carbon pricing mechanisms) are driving the rapid growth of investments in these generation technologies worldwide.