Capacity markets intend to bridge the gap between revenues available from energy markets and the all-in cost of desired capacity. They offer commitments, still short-term relative to most investment timescales, to make fixed payments for the right to call on an energy resource when needed.
Daily Archives: April 28, 2015
Do Pay-for-Performance Capacity Markets Deliver the Grid Resiliency Outcomes We Need?
Several market operators have instituted capacity markets to bridge the gap between revenue available from energy markets and the all-in cost of desired capacity. But will they deliver the outcomes needed for the energy system transition?