Capacity market design and renewable energy: Performance incentives, qualifying capacity, and demand curves

Journal Article · Mon Jan 01 00:00:00 EST 2018 · Electricity Journal

DOI:https://doi.org/10.1016/j.tej.2018.01.006· OSTI ID:1433060

Byers, Conleigh; Levin, Todd; Botterud, Audun

A review of capacity markets in the United States in the context of increasing levels of variable renewable energy finds substantial differences with respect to incentives for operational performance, methods to calculate qualifying capacity for variable renewable energy and energy storage, and demand curves for capacity. The review also reveals large differences in historical capacity market clearing prices. The authors conclude that electricity market design must continue to evolve to achieve cost-effective policies for resource adequacy.

• Research Organization: Argonne National Lab. (ANL), Argonne, IL (United States)
• Sponsoring Organization: USDOE Office of Energy Efficiency and Renewable Energy (EERE) - Wind and Water Power Technologies (WWPTO)
• DOE Contract Number: AC02-06CH11357
• OSTI ID: 1433060
• Journal Information: Electricity Journal, Vol. 31, Issue 1; ISSN 1040-6190
• Publisher: Elsevier
• Country of Publication: United States
• Language: English