OK #EnergyTwitter hive mind, let's see if you can help me find the right reference. Power systems are moving toward an end state in which all or nearly all of the generation resources are near-zero short run marginal costs. @ElephantEating @JesseJenkins

This change means that the market structure to pay generators for their output needs to change to properly motivate the desired behavior, namely long run investments that meet demand every hour of every day with high reliability.

It also means that rate structures need to change to better reflect costs in this new world. I found a reference that talks about how rates need to change in this new environment:

Lo, Helen, Seth Blumsack, Paul Hines, and Sean Meyn. 2019. "Electricity rates for the zero marginal cost grid." The Electricity Journal. vol. 32, no. 3. 2019/04/01/. pp. 39-43. [ http://www.sciencedirect.com/science/article/pii/S1040619019300594]

Does anyone have a reference supporting the first point, giving guidance on how payment incentives, contracting, and market design need to change to give the right investment incentives in the new world of the zero marginal cost grid ?

Obviously the end state won't happen in most places for a decade or two, but as always, I'm trying to skate to where the puck is going to be. Thanks to anyone who can point me in the right direction.