How to ensure adequate investment in power plants?

Leonardo Meeus and Athir Nouicer ()

Chapter 7 in The Evolution of Electricity Markets in Europe, 2020, pp 135-151 from Edward Elgar Publishing

Abstract: In the seventh chapter of this book, we cover European practices to ensure adequate investment in power plants, i.e. adequacy. We discuss this topic by answering three questions. First, why did some countries introduce a capacity mechanism? We explain the concepts of missing money and missing markets, and the politics of capacity mechanisms. Second, what is the best capacity mechanism? We discuss the main lessons learned from the experiences with capacity mechanisms of Spain, Sweden, Great Britain and Ireland. Third, how to limit the (ab)use of capacity mechanisms? The Clean Energy Package introduced an EU-wide resource adequacy assessment and a market reform implementation plan that need to be considered before implementing capacity mechanisms. The chapter ends with a conclusion, in which we summarize our main points.

Keywords: Economics and Finance (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.elgaronline.com/view/9781789905465.00020.xml (application/pdf)
Our link check indicates that this URL is bad, the error code is: 503 Service Temporarily Unavailable

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:elg:eechap:19187_7

Ordering information: This item can be ordered from
http://www.e-elgar.com

Access Statistics for this chapter

More chapters in Chapters from Edward Elgar Publishing
Bibliographic data for series maintained by Darrel McCalla ().