Perspectives on Modeling Market Interactions in face of an evolving resource mix

Despite the knowledge and experience of market operators, consultation with market participants, and approval by regulators, changes in market design do not always have the intended beneficial outcomes. Agent modeling can be a useful approach in validating whether there may be unintended consequences as market participants operate under new market rules. Examples of such outcomes are explored, with insights offered about the modeling requirements. A final example identifies the development of diverse forms of energy storage as an example of developing changes in resource portfolios. In the example of energy storage, ongoing research will seek to compare the results of decentralized decisions for operation of storage with the results of market operator dispatch.