As 2025 begins, power markets face an urgent need to adapt to the rapid integration of renewable energy, AI-driven data center load growth and infrastructure expansion—each posing significant challenges to grid stability and reliability. In the Western U.S., the Southwest Power Pool’s (SPP) Markets+ initiative represents a major step toward ensuring grid reliability by introducing organized energy markets to a region traditionally reliant on bilateral trading.
Markets+ is not a full regional transmission organization (RTO), it is a collective of utilities, generators and municipalities with the goal of providing many similar benefits, except with greater flexibility. It aims to improve regional coordination, grid stability and market efficiency, though its success will depend on stakeholder engagement and collaboration.
Markets+ Development Timeline
SPP launched Markets+ development in late 2021, progressing through several key phases:
- 2022: Initial feasibility assessments and stakeholder engagement began.
- 2023: Detailed market design proposals were developed with industry input.
- 2024-2026: Regulatory filings, approval processes and system build-out advanced.
- 2027: Initial market operations are expected to commence, though participation may scale up gradually.
What Markets+ Brings to the Grid
Markets+ extends SPP’s market expertise to a broader geographic area by offering:
- Day-ahead and real-time markets: Enhancing resource dispatch efficiency.
- Energy imbalance services : Managing differences between scheduled and actual energy use.
- Transmission utilization: Improving the use of existing infrastructure.
- Flexible participation: Allowing utilities to engage at their desired commitment level.
This approach delivers economic and operational benefits while respecting market participants’ unique requirements.
Renewable Integration in Focus
Markets+ supports renewable energy integration through:
- Reducing curtailment: Coordinating resources to maximize renewable energy use.
- Balancing supply and demand: Managing renewable intermittency while maintaining grid reliability.
- Supporting decarbonization goals: Helping stakeholders meet sustainability targets.
However, full renewable integration depends on widespread participation and resolving transmission bottlenecks.
Transmission: A Critical Component
Transmission infrastructure remains a challenge for the Western Interconnection. Markets+ addresses this through:
- Optimized use of existing capacity: Reducing congestion and enhancing reliability.
- Informed expansion planning: Using market signals to guide new project priorities.
- Current infrastructure limits: Acknowledging that new transmission builds remain essential for long-term success.
Markets+ Stakeholders: Opportunities and Challenges
Markets+ offers opportunities for various stakeholders, including:
- Utilities and public power: Reducing costs through market efficiencies.
- Renewable developers: Enhancing integration and dispatch of renewable energy.
- Power traders: Increasing market transparency and liquidity.
However, benefits will vary based on geographic location, resource mix and participation levels. For some, Markets+ may be a steppingstone rather than a permanent market solution.
Markets+ in 2027: A Developing Framework
While Markets+ is expected to bring measurable benefits by 2027, its long-term success depends on:
- Participation levels: Achieving broad engagement for scale and efficiency.
- Regulatory coordination: Navigating complex multi-state oversight.
- Infrastructure investment: Aligning market operations with transmission planning.
Looking Ahead
Markets+ is a crucial development in the Western Interconnection’s evolving energy landscape. By fostering greater market coordination, improving renewable integration and optimizing transmission use, it offers a promising framework for future growth and stability. However, realizing its full potential will require continuous investment, stakeholder collaboration and regulatory alignment.
As the energy industry looks to 2027 and beyond, Markets+ could redefine how power is traded, delivered and managed across the West—setting the stage for a more efficient, reliable and sustainable energy future.
About Enverus Power and Renewables
With more than 25 years of expertise in power markets, 7,500 users leverage Enverus solutions to develop projects, manage the grid, trade power and facilitate asset transactions. Enverus team of 1,700 professionals includes 300+ power and renewables experts—industry veterans and PhDs—ensuring our data and insights meet the evolving challenges of the power industry.
Enverus customers, on average, achieve 20% higher trading profits and trade four times more CRR megawatts than non-Enverus users. With a 25-year track record of forecasting load more accurately than ISOs, Enverus is uniquely positioned to meet your needs across the entire power market.
