Electricity Markets for Commercial and Industrial Users

The rise of data centers and hyperscalers that support the AI boom has raised new issues for electricity markets. These high-demand commercial users, as well as some other industrial clients, demand interruption-free electricity in large quantities. This project will examine the terms on which firms in this new category of electricity buyer purchase electricity, the ways they secure uninterrupted supply (such as building their own short-term backup facilities or alternative contract arrangements), and the implications of this new source of demand for residential and other traditional electricity buyers.