A Review of Capacity Markets
Tuesday, May 10, 2016 - 1:30pm - 2:00pm
Many electricity markets around the world have implemented capacity markets in order to ensure resource adequacy. Insufficient incentives for capacity expansion and/or hedging for rare events (scarcity) have largely motivated the introduction of these markets. In this talk we will review (i) the arguments supporting the widespread adoption of capacity markets (ii) the details of different market designs. We will end by discussing a number of design issues that have been highly controversial.