Discussion Paper: Generation Capacity Investments and High Levels of Renewables. The Impact of a German Capacity Market on Northwest Europe
report
Presently, Northwest European centralised electricity markets are designed as energy-only markets. In an energy-only market, the price received for electricity produced is set by the marginal generation unit. Potentially, the designs of these markets could leave the owners of these units with missing money: i.e. money that is required to recover investment cost. Further, increasing penetration of renewables could exacerbate this problem. Of all the different options available to tackle the missing money problem, capacity mechanisms have attracted most of the attention in recent policy debates in Europe.
TNO Identifier
823330
Publisher
ECN
Collation
34 p.
Place of publication
Petten
Pages
34 p.
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