Capacity market design options: A dynamic capacity investment model and a GB case study

Daniel Hach, Chi Kong Chyong and Stefan Spinler

European Journal of Operational Research, 2016, vol. 249, issue 2, 691-705

Abstract: Rising feed-in from renewable energy sources decreases margins, load factors, and thereby profitability of conventional generation in several electricity markets around the world. At the same time, conventional generation is still needed to ensure security of electricity supply. Therefore, capacity markets are currently being widely discussed as a measure to ensure generation adequacy in markets such as France, Germany, and the United States (e.g., Texas), or even implemented for example in Great Britain.

Keywords: Capacity mechanism; Capacity market; Dynamic capacity investment model; Generation adequacy; Conventional electricity generation investment; Renewable energy sources (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (21)

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Working Paper: Capacity market design options: a dynamic capacity investment model and a GB case study (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:249:y:2016:i:2:p:691-705

DOI: 10.1016/j.ejor.2015.08.034

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