Incentive or impediment? : the impact of capacity mechanisms on storage plants

SCHMITZ, Katrin; STEFFEN, Bjarne; WEBER, Christoph

Incentive or impediment? : the impact of capacity mechanisms on storage plants

dc.contributor.author	SCHMITZ, Katrin
dc.contributor.author	STEFFEN, Bjarne
dc.contributor.author	WEBER, Christoph
dc.date.accessioned	2013-06-21T08:15:42Z
dc.date.available	2013-06-21T08:15:42Z
dc.date.issued	2013
dc.description.abstract	Capacity remuneration mechanisms are a widespread instrument to foster investment. The growing interest in electricity storage raises the question how these mechanisms interact with storage plants. Using a stylized capacity planning model, we demonstrate that an exclusion of storage plants from capacity mechanisms leads to welfare losses. Even if storages are not explicitly excluded, the setup of capacity mechanisms can discriminate storage implicitly we therefore discuss typical mechanism design parameters and their impact on storage plants. Three case studies describe the actual situation of storage plants in the PJM system, Ireland and Spain. Finally the findings are summarized to general principles for storage-compatible capacity mechanisms.	en
dc.format.mimetype	application/pdf
dc.identifier.issn	1028-3625
dc.identifier.uri	https://hdl.handle.net/1814/27414
dc.language.iso	en	en
dc.relation.ispartofseries	EUI RSCAS	en
dc.relation.ispartofseries	2013/46	en
dc.relation.ispartofseries	[Florence School of Regulation]	en
dc.relation.ispartofseries	[Energy]	en
dc.rights	info:eu-repo/semantics/openAccess	en
dc.rights	info:eu-repo/semantics/openAccess
dc.subject	Capacity market	en
dc.subject	Pumped-hydro storage	en
dc.subject	Power plant investment	en
dc.subject	L51	en
dc.subject	L52	en
dc.subject	L94	en
dc.subject	Q41	en
dc.subject	Q42	en
dc.subject	Q48	en
dc.title	Incentive or impediment? : the impact of capacity mechanisms on storage plants	en
dc.type	Working Paper	en
dspace.entity.type	Publication
eui.subscribe.skip	true