NDN

Competitive electricity markets unlock the innovative solutions required to meet America’s energy needs and environmental objectives, said experts at a COMPETE Coalition panel discussion event. Unless markets are opened up to competition, the nation’s energy system cannot reach its full potential.

Competitive markets promote competition among power suppliers to deliver the best possible service to attract and retain customers. Comparatively, in monopoly-protected states, incumbent power providers have no incentive to innovate because ratepayers are captive to their monopoly utility and power suppliers are guaranteed recovery of their costs plus a profit.

Organized competitive markets create an effective mechanism to stimulate technological innovations and achieve federal emissions reductions goals. Promoting innovative solutions and market approaches delivers economic and environmental benefits to consumers.

A proposal being developed in the U.S. Senate would use a market-based approach to limiting carbon dioxide emissions from the electricity sector. While drumming up support for the tri-partisan bill, Senator John Kerry (D-MA) said that markets unleash “ingenuity” and send the proper price signals for investment. COMPETE couldn’t agree more, as outlined in a joint statement with the Environmental Defense Fund (EDF).

The COMPETE Coalition has long advocated competition in electricity as integral to unlocking technology innovation, development and jobs growth - as we all experienced when competition was injected into telecommunications and other formerly monopoly industry sectors. So we are especially enthusiastic when other voices join us in underscoring this important policy point, as when the Environmental Defense Fund joined us in highlighting the link between competition, technology innovation and environmental benefits.

Now NDN, an influential Democratic policy think tank, has released a comprehensive report pointing to competition in our nation's electricity markets as the launching pad for innovation, such as smart grid technologies and greater development of renewable energy. The report, Electricity 2.0, finds that monopoly protections and hybrid competition in a state-by-state patchwork thwart market entry of new clean energy generation and technologies. Instead, NDN advocates an "Open Energy Network" that would allow competition to provide environmental, economic and technological benefits for the entire country.