Print Email Facebook Twitter Cross-border effects of capacity mechanisms in interconnected power systems Title Cross-border effects of capacity mechanisms in interconnected power systems Author Bhagwat, P.C. (TU Delft Energy & Industry; European University Institute) Richstein, J.C. (TU Delft Energy & Industry; Deutsches Institut für Wirtschaftsforschung) Chappin, E.J.L. (TU Delft Energy & Industry) Iychettira, K.K. (TU Delft Energy & Industry) De Vries, Laurens (TU Delft Energy & Industry) Date 2017 Abstract 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. Subject Capacity marketCross-border effectStrategic reserve To reference this document use: http://resolver.tudelft.nl/uuid:c48cedb1-24d7-470f-9746-6e829de493f5 DOI https://doi.org/10.1016/j.jup.2017.03.005 ISSN 0957-1787 Source Utilities Policy: strategy, performance, regulation, 46, 33-47 Part of collection Institutional Repository Document type journal article Rights © 2017 P.C. Bhagwat, J.C. Richstein, E.J.L. Chappin, K.K. Iychettira, Laurens De Vries Files PDF 1_s2.0_S0957178716300832_main.pdf 1.85 MB Close viewer /islandora/object/uuid:c48cedb1-24d7-470f-9746-6e829de493f5/datastream/OBJ/view