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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
Resource Relation:
Journal Name: Electricity Journal; Journal Volume: 20; Journal Issue: 2; Other Information: Elsevier Ltd. All rights reserved
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. doi:10.1016/J.TEJ.2006.12.006.
Nieto, Amparo D., and Fraser, Hamish. Thu . "Locational electricity capacity markets: Alternatives to restore the missing signals". United States. doi: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},
journal = {Electricity Journal},
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}
}