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

For years, capacity markets quietly operated in the background: reliable, technical, and rarely in the headlines. Not anymore! In today’s episode of Power Perspectives, host Kinsey Grant Baker sits down with Christoph Graf, Senior Economist and Research Scholar at NYU’s Institute for Policy Integrity, to unpack why capacity markets are suddenly at the center of the energy conversation and why every utility leader should be paying closer attention. From record-breaking PJM auction prices to mounting pressure from state governors and regulators, capacity markets are facing what may be called a crisis of confidence. But behind the headlines lies a bigger question: are these markets built based on the legacy utility setup still fit for today’s new era of data-center-driven load growth, rapid electrification, and decarbonization mandates? Having studied market design and power sector reform across the U.S. and Europe, Graf offers a sharp, data-driven look at the mechanics shaping this moment and where reform might go next. This episode cuts through the noise to reveal what’s really happening behind the market mechanics and what it all means for utility leaders balancing affordability, reliability, and clean energy commitments in a rapidly evolving power system. Signup for the Energy Central Daily Newsletter: https://energycentral.beehiiv.com/subscribe