A Review of Capacity Markets
Presenter
May 10, 2016
Keywords:
- resource adequacy, capacity market, reliability options
MSC:
- 91B99
Abstract
Many electricity markets around the world have implemented capacity markets in order to ensure resource adequacy. Insufficient incentives for capacity expansion and/or hedging for rare events (scarcity) have largely motivated the introduction of these markets. In this talk we will review (i) the arguments supporting the widespread adoption of capacity markets (ii) the details of different market designs. We will end by discussing a number of design issues that have been highly controversial.