Detalle Publicación


Consumer welfare implications of capacity markets in liberalized electricity sectors

Título de la revista: THE ELECTRICITY JOURNAL
ISSN: 1040-6190
Volumen: 28
Número: 9
Páginas: 113 - 119
Fecha de publicación: 2015
Though it has been shown that consumers pay higher electricity prices in areas with capacity markets, those markets also serve as an insurance mechanism in incentivizing capacity additions and thereby reducing the probability of extreme events. Critics argue that the lack of a capacity mechanism in Texas ERCOT has resulted in a dangerously shrinking capacity reserve margin.