Capacity Markets: Rationale, Designs, and Trade-Offs

Garcia, Alfredo

doi:10.1007/978-1-4939-7822-9_3

Alfredo Garcia⁶

Part of the book series: The IMA Volumes in Mathematics and its Applications ((IMA,volume 162))

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Abstract

Many electricity markets around the world have implemented capacity markets (e.g., PJM, New England, New York, UK, Colombia), and many more are in the process of finalizing capacity market designs. In this chapter we will review the rationale behind capacity markets, the basic traits of the most popular designs and some outstanding design issues.

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Notes

1.
The notion of maintaining strategic reserves is not novel. For example, the USA has kept for several decades an inventory of oil reserves for national security purposes.

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Authors and Affiliations

Department of Industrial and Systems Engineering, Texas A&M University, College Station, TX, USA
Alfredo Garcia

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Alfredo Garcia
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Correspondence to Alfredo Garcia .

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Editors and Affiliations

Department of Electrical and Computer Engineering, University of Florida, Gainesville, Florida, USA
Sean Meyn
Technological Leadership Institute, University of Minnesota, Minneapolis, Minnesota, USA
Tariq Samad
Department of Electrical Engineering and Computer Science, University of Michigan, Ann Arbor, Michigan, USA
Ian Hiskens
Department of Electronic Systems, Aalborg University, Aalborg, Denmark
Jakob Stoustrup

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Garcia, A. (2018). Capacity Markets: Rationale, Designs, and Trade-Offs. In: Meyn, S., Samad, T., Hiskens, I., Stoustrup, J. (eds) Energy Markets and Responsive Grids. The IMA Volumes in Mathematics and its Applications, vol 162. Springer, New York, NY. https://doi.org/10.1007/978-1-4939-7822-9_3

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DOI: https://doi.org/10.1007/978-1-4939-7822-9_3
Published: 01 June 2018
Publisher Name: Springer, New York, NY
Print ISBN: 978-1-4939-7821-2
Online ISBN: 978-1-4939-7822-9
eBook Packages: Mathematics and StatisticsMathematics and Statistics (R0)

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