Cross-border effects of capacity mechanisms in interconnected power systems

Artikel

The cross-border effects of a capacity market and a strategic reserve in interconnected electricity markets are modeled using an agent-based modeling methodology. Both capacity mechanisms improve the security of supply and reduce consumer costs. Our results indicate that interconnections do not affect the effectiveness of a capacity market, while a strategic reserve is affected negatively. The neighboring zone may free ride on the security of supply provided by the zone implementing a capacity mechanism. However, a capacity market causes crowding out of generators in the energy-only zone. A strategic reserve implemented by this region could aid in mitigating this risk.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: Utilities Policy ; ISSN: 0957-1787 ; Volume: 46 ; Year: 2017 ; Pages: 33-47 ; Amsterdam: Elsevier

Classification and Topics

• Classification: Wirtschaft
• Subject: Capacity market ; Cross-border effect ; Strategic reserve

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Bhagwat, Pradyumna C. ; Richstein, Jörn C. ; Chappin, Emile J.L. ; Iychettira, Kaveri K. ; Vries, Laurens J. De
• Event: Veröffentlichung
• (who): Elsevier
• (where): Amsterdam
• (when): 2017

Further information

• DOI: doi:10.1016/j.jup.2017.03.005
• Handle: http://hdl.handle.net/10419/200102
• Last update: 10.03.2025, 11:41 AM CET