Étiqueté : capacity market

Security of Supply, Capacity Auctions and Interconnectors

Energy policy aims to deliver security, sustainability and affordability, but politicians treat security of supply as over-riding. Absent market and regulatory failures, liberalized energy-only electricity markets might deliver adequate capacity. Ambitious targets for subsidized renewables and policy uncertainty have undermined the commercial case for the investment needed to handle increased intermittency and raised concerns for capacity adequacy. In response Britain now holds annual capacity auctions. The paper examines the case for, criticisms of, and the outcome of the first auction, criticizing the decision to ignore the contribution that interconnectors make to security of supply.

Which electricity market design to encourage the development of demand response?

“In this paper, focusing on demand response and smart metering for mid-size and small consumers, we investigate which types of market signals should be sent to demand manager to see demand response emerge as a competitive activity. Using data from the French power system over the last 8 years, we compare the possible market design options to allow demand response to develop…”

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