How capacity markets broke—and what it takes to fix them

In this episode of Energy Central's Power Perspectives, Kinsey Grant Baker interviews Christoph Graf, a senior economist, about capacity markets and electricity prices in the U.S. They discuss the basics of capacity markets, their purpose in ensuring grid reliability, and how they function differently across various regions like PJM, California, and Texas. The conversation covers the recent PJM capacity auction, the impact of data center load growth on prices, and the effects of interventions like price caps and floors. They also explore the challenges of predicting future demand, integrating new technologies like virtual power plants, and the role of utility professionals in addressing affordability and reliability in the energy industry.