Expert survey on capacity markets in the US

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Expert survey on capacity markets in the US

Lessons for the EU

Journal Article (2016)

Author(s)

Pradyumna Bhagwat (TU Delft - Energy and Industry)

Laurens de Vries (TU Delft - Energy and Industry)

B.F. Hobbs (Johns Hopkins University)

DOI related publication

https://doi.org/10.1016/j.jup.2015.11.005 Final published version

To reference this document use

https://resolver.tudelft.nl/uuid:9a9407d7-dbe1-437f-9d01-5e55895fe39c

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Publication Year

2016

Language

English

Volume number

38

Pages (from-to)

11-17

Downloads counter

140

Abstract

We present a survey of US capacity market experts with the purpose of drawing lessons for the EU. Of the respondents, 41% advised EU member states against implementing capacity markets, while the remaining were neutral or provided suggestions for improving capacity markets. Cross-border effects are currently not a concern but may become so in the future. Imports may dampen prices in a capacity market, but neighbouring markets may also experience pressure to implement a capacity market. The capacity markets in the USA were believed to have achieved their goals with respect to reliability, but in an economically inefficient manner.