Template-Type: ReDIF-Article 1.0
Author-Name:  Kathleen Spees
Author-Name:  Samuel A. Newell
Author-Name:  Johannes P. Pfeifenberger
Title:  Capacity Markets - Lessons Learned from the First Decade
Classification-JEL: F0
Pages:  
Volume:  Volume 2
Issue:  Number 2
Year:  2013
Abstract:  Capacity markets were introduced in the U.S. in the late 1990s as a means to ensure "resource adequacy" in liberalized electricity markets where generation must be built by merchant investors rather than regulated entities. This paper provides a general introduction to these markets: why they exist, how they function, how well they have performed in their first decade of operation, and the current challenges they face. It shows that capacity markets can work to meet their objectives but will need to address various design challenges over the coming years. 
Handle: RePEc:aen:eeepjl:2_2_a01
File-URL: http://www.iaee.org/en/publications/eeeparticle.aspx?id=45
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