Capacity markets: review and a dynamic assessment of demand-curve approaches

摘要: In the absence of significant consumer response to real-time electricity prices, market does not reveal value generation adequacy. As a result, energy markets alone are unlikely provide right amount capacity, particularly if they subject stringent price caps. The installed capacity (ICAP) in northeastern US this need for additional incentives construct generation. Pennsylvania-Jersey-Maryland (PJM) and New England markets, proposals being considered replace present fixed ICAP requirement that is placed upon load serving entities (LSEs) with demand-curve based system which independent operator (ISO) would be responsible acquiring on behalf LSEs. demand curve approach pays more when reserve margins smaller, reduces disincentives investment reserves above target levels. Other goals such make revenues predictable generators, making less costly, ultimately, lowering prices consumers. A dynamic model presented projecting effects margins, LOLP, generator profitability, costs, its application illustrated hypothetical curves. method presently used evaluate curves PJM, authors intend analyses final proposal alternatives at 2005 IEEE Power Engineering General Meeting.