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Title: Locational electricity capacity markets: Alternatives to restore the missing signals

Abstract

In the absence of a properly functioning electricity demand side, well-designed capacity payment mechanisms hold more promise for signaling the value of capacity than non-CPM alternatives. Locational CPMs that rely on market-based principles, such as forward capacity auctions, are superior to cost-based payments directed to specific must-run generators, as CPMs at least provide a meaningful price signal about the economic value of resources to potential investors. (author)

Authors:
;
Publication Date:
OSTI Identifier:
20864965
Resource Type:
Journal Article
Journal Name:
Electricity Journal
Additional Journal Information:
Journal Volume: 20; Journal Issue: 2; Other Information: Elsevier Ltd. All rights reserved; Journal ID: ISSN 1040-6190
Country of Publication:
United States
Language:
English
Subject:
29 ENERGY PLANNING, POLICY AND ECONOMY; CAPACITY; MARKET; ELECTRIC POWER; PRICES; COMPARATIVE EVALUATIONS; FINANCING

Citation Formats

Nieto, Amparo D, and Fraser, Hamish. Locational electricity capacity markets: Alternatives to restore the missing signals. United States: N. p., 2007. Web. doi:10.1016/J.TEJ.2006.12.006.
Nieto, Amparo D, & Fraser, Hamish. Locational electricity capacity markets: Alternatives to restore the missing signals. United States. https://doi.org/10.1016/J.TEJ.2006.12.006
Nieto, Amparo D, and Fraser, Hamish. 2007. "Locational electricity capacity markets: Alternatives to restore the missing signals". United States. https://doi.org/10.1016/J.TEJ.2006.12.006.
@article{osti_20864965,
title = {Locational electricity capacity markets: Alternatives to restore the missing signals},
author = {Nieto, Amparo D and Fraser, Hamish},
abstractNote = {In the absence of a properly functioning electricity demand side, well-designed capacity payment mechanisms hold more promise for signaling the value of capacity than non-CPM alternatives. Locational CPMs that rely on market-based principles, such as forward capacity auctions, are superior to cost-based payments directed to specific must-run generators, as CPMs at least provide a meaningful price signal about the economic value of resources to potential investors. (author)},
doi = {10.1016/J.TEJ.2006.12.006},
url = {https://www.osti.gov/biblio/20864965}, journal = {Electricity Journal},
issn = {1040-6190},
number = 2,
volume = 20,
place = {United States},
year = {Thu Mar 15 00:00:00 EDT 2007},
month = {Thu Mar 15 00:00:00 EDT 2007}
}