Cooperation or Localization in European Capacity Markets? A Coalitional Game over Graph Approach

Giorgos Stamtsis and Haris Doukas
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Giorgos Stamtsis: Decision Support Systems Laboratory, School of Electrical and Computer Engineering, National Technical University of Athens, Iroon Politechniou 9, 157 80 Athens, Greece
Haris Doukas: Decision Support Systems Laboratory, School of Electrical and Computer Engineering, National Technical University of Athens, Iroon Politechniou 9, 157 80 Athens, Greece

Energies, 2018, vol. 11, issue 6, 1-17

Abstract: Capacity markets, as a means to address the capacity adequacy issue, are constantly becoming an important part of the European internal electricity market. The debate focuses on how the capacity markets will be smoothly integrated in one Pan-European power market, without resulting in multiple national fragmentations and consequently in economic efficiency losses. Cross-border participation and regional cooperation are considered as two sine qua non conditions in this respect. The present paper provides a coalitional game theoretical approach aiming to facilitate the cooperation of neighboring countries, when it comes to the security of electricity supply and the necessity of establishing a capacity market. Such an approach can support respective decisions about capacity markets cooperation as well as stress-test the benefits considering all cooperation possibilities.

Keywords: cooperation; coalitional games; decision support; capacity market; adequacy; characteristic function; Myerson value; nucleolus; proportional division (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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