RGEM Trade

We at Rothschild Financial are developing a model that will be used to plan, structure, and build innovative, rapidly developing, and capital/R&D-intensive markets and industries. Our Renewable Generation Electricity Market (RGEM) proposes a system wherein utilities bid on future contracts with the assumption that increasing innovation (for example, in solar or wind energy) will make the delivery of energy more affordable, and therefore make possible the bidding at auction of prices that are not currently feasible. Such a mechanism would allow the market’s price to reflect market consensus probability of technological improvement and reward performance—the important components of successful innovation policy. Such a promotion of new technologies would not only spur a state or municipality’s economy through job growth, but would also align the interests of energy providers, consumers, and policy-makers through the more efficient and affordable delivery of energy.