Wholesale Decarbonization: An Assessment of RTO Options to Advance CO2 Objectives in the Carolinas

By Gennelle Wilson

Contributing Editor: Tyler H. Norris

April 2021

Download the report: Report PDF

The purpose of this paper is to inform policy discourse in states considering the interaction of wholesale power market participation and electric power sector decarbonization, with a particular emphasis on the Carolinas region. 

Wholesale power markets are often perceived as inherently superior to bilateral, regulated markets for advancing power sector decarbonization. However, not all wholesale markets are created equal, and it is important for states considering wholesale market participation to consider how market design can support or hinder decarbonization.

This paper compares RTO options for the Carolinas to determine which option currently presents the best configuration to facilitate decarbonization of the Carolinas power sector. For each of the RTO options, the paper explores the market rules and structures that are both harmonious and incongruous with decarbonization of the power sector. This exploration is broken out into four core RTO functional areas:

1. Unit commitment and dispatch;
2. Provision of ancillary services;
3. Resource adequacy; and
4. Governance.

The report is available for download here.

About the Author: Gennelle Wilson is a Senior Associate in the Carbon Free Electricity program at RMI, where she conducts analysis on regulatory policy reform and changes to the utility business model. Prior to joining RMI, Gennelle was an associate at the Nicholas Institute for Environmental Policy Solutions where she contributed to the North Carolina Energy Efficiency Roadmap and was a co-author for the Power Sector Carbon Reduction: An Evaluation of Policies for North Carolina report. She received a Master’s of Environmental Management from Duke University’s Nicholas School for the Environment in May 2020.