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dc.contributor.authorBHAGWAT, Pradyumna
dc.contributor.authorDE VRIES, Laurens
dc.date.accessioned2017-05-08T12:29:49Z
dc.date.available2017-05-08T12:29:49Z
dc.date.issued2017
dc.identifier.isbn9789290844716
dc.identifier.issn2467-4540
dc.identifier.urihttps://hdl.handle.net/1814/46290
dc.description.abstractStrategic reserves and capacity markets can improve the security of supply and contribute positively to consumer benefits if they are carefully conceived and managed. • The presence of an interconnector may negatively affect the effectiveness of a capacity market, depending on the relative size of the interconnection and the degree to which the consumption peaks coincide. The capacity ‘leakage’ benefits the neighbouring market in terms of lower prices and higher reliability, but it may also lead to import dependency. • A capacity market can crowd out generators in an interconnected energy-only zone. Hence, it may put pressure on neighbouring markets to implement a capacity mechanism as well. • In case the neighbouring zone decides not to implement a capacity market, a strategic reserve can also offset this crowding-out effect and thus lower the risk of investment cycles in generation capacity.en
dc.format.mimetypeapplication/pdf
dc.language.isoen
dc.relation.ispartofseriesPolicy Briefsen
dc.relation.ispartofseries2017/10en
dc.relation.ispartofseriesFlorence School of Regulationen
dc.relation.ispartofseriesEnergyen
dc.relation.ispartofseriesClimateen
dc.relation.urihttp://fsr.eui.eu/
dc.rightsinfo:eu-repo/semantics/openAccess
dc.titleCapacity mechanisms in interconnected marketsen
dc.typeOtheren
dc.identifier.doi10.2870/144768
eui.subscribe.skiptrue


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