Electricity Capacity Markets

Environmental / Energy Law

Electricity Capacity Markets

Edited by Todd S. Aagaard · Andrew N. Kleit
Cambridge University Press March 2022

Specifications

ISBN-13
9781108747424
Publisher
Cambridge University Press
Publication
March 2022
Format
Paperback
Jurisdiction
U.K. ? Countri(es) for reference only

Details

Initially created as afterthoughts to competitive electricity markets, capacity markets were intended to enhance system reliability. They have evolved into massive, highly controversial, and poorly understood billion-dollar institutions. Electricity Capacity Markets examines the rationales for creating capacity markets, how capacity markets work, and how well these markets are meeting their objectives. This book will appeal to energy experts and non-experts alike, across a range of disciplines, including economics, business, engineering, public policy, and law. Capacity markets are an important and provocative topic on their own, but they also offer an interesting case study of how well our energy systems are meeting the needs of our increasingly complex society. The challenges facing capacity markets – harnessing market forces for social good, creating networks that manage complexity, and achieving sustainability – are very much core challenges for our twenty-first century advanced industrial society.

Table of Contents

1. Introduction
2. Capacity markets primer
3. Restructured electricity markets and regional transmission organizations
4. Reliability and the 'missing money' problem
5. Capacity policies
6. First-generation capacity markets
7. Second-generation capacity markets
8. Capacity market demand
9. Capacity market supply
10. Capacity market design
11. Market power
12. Minimum offer price rules
13. The Texas alternative
14. Conclusion
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