Tag Archives: capacity

How should RTOs determine the amount of capacity different types of resources should be able to sell in their capacity markets?

A resource’s true reliability value is its expected availability to provide energy or reserves when the system is at risk of load shedding. This value depends on (a) the timing of the system’s hours of greatest need and (b) the factors that affect the availability of a resource in those hours. Importantly, the hours of...

Do State Public Policies Undermine Competitive Electricity Markets?

The bad news is that state public policies often do undermine competitive electricity markets. The good news is that the harm can be mitigated. States have become increasingly active in pursuing environmental goals by subsidizing investment in renewable energy generation, including solar, wind, and hydroelectric resources. This subsidized entry of capacity is problematic to the...