Orchestrating Investment in an Evolving Power Sector: An Analysis of Capacity Markets

There is increasing concern that energy-only markets are inadequate when it comes to ensuring generation adequacy in the power sector over the long term. This is reflected in the fact that several Independent System Operators have commissioned studies about security of supply over the last few years; OFGEM and CEER (Council of European Energy...

Potential effects of risk aversion on technology choices and security of supply: Researched with an agent-based model of a liberalised electricity market

Given the current vulnerability of the profitability of power plants to price volatilities and government policy changes, the role of risk considerations in power plant investment decisions becomes increasingly important. However, when we look at simulation studies that look into the long-term impact of different policy designs on electricity...