Journal
ENERGY ECONOMICS
Volume 80, Issue -, Pages 1059-1078Publisher
ELSEVIER
DOI: 10.1016/j.eneco.2019.01.030
Keywords
Electricity market; Market design; Generation adequacy; Capacity markets; Capacity remuneration mechanisms
Categories
Funding
- European Union [691685]
- German Federal Ministry for Economic Affairs and Energy [0324002A]
Ask authors/readers for more resources
In recent years, electricity markets have been characterized by a growing share of fluctuating renewable energies, which has increased concerns about the security of electricity supply. As a consequence, existing market designs are adapted, and new capacity remuneration mechanisms are introduced. However, these mechanisms entail new challenges, and it is disputed whether they are indeed needed. In this article, an overview of the current debate on the necessity of capacity remuneration mechanisms is provided. Furthermore, initial experiences of real-world implementations are discussed, and common findings in the literature, categorized by their economic implications, are derived. Finally, shortcomings in existing research and open questions that need to be addressed in future works are pointed out. (C) 2019 The Authors. Published by Elsevier B.V.
Authors
I am an author on this paper
Click your name to claim this paper and add it to your profile.
Reviews
Recommended
No Data Available