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Cross-border effects of capacity mechanisms in interconnected power systems. / Bhagwat, Pradyumna C.; Richstein, Jörn C.; Chappin, Emile J.L.; Iychettira, Kaveri K.; De Vries, Laurens J.

In: Utilities Policy: strategy, performance, regulation, Vol. 46, 01.06.2017, p. 33-47.

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@article{c48cedb124d7470f97466e829de493f5,
title = "Cross-border effects of capacity mechanisms in interconnected power systems",
abstract = "The cross-border effects of a capacity market and a strategic reserve in interconnected electricity markets are modeled using an agent-based modeling methodology. Both capacity mechanisms improve the security of supply and reduce consumer costs. Our results indicate that interconnections do not affect the effectiveness of a capacity market, while a strategic reserve is affected negatively. The neighboring zone may free ride on the security of supply provided by the zone implementing a capacity mechanism. However, a capacity market causes crowding out of generators in the energy-only zone. A strategic reserve implemented by this region could aid in mitigating this risk.",
keywords = "Capacity market, Cross-border effect, Strategic reserve",
author = "Bhagwat, {Pradyumna C.} and Richstein, {J{\"o}rn C.} and Chappin, {Emile J.L.} and Iychettira, {Kaveri K.} and {De Vries}, {Laurens J.}",
year = "2017",
month = "6",
day = "1",
doi = "10.1016/j.jup.2017.03.005",
language = "English",
volume = "46",
pages = "33--47",
journal = "Utilities Policy: strategy, performance, regulation",
issn = "0957-1787",
publisher = "Elsevier",

}

RIS

TY - JOUR

T1 - Cross-border effects of capacity mechanisms in interconnected power systems

AU - Bhagwat, Pradyumna C.

AU - Richstein, Jörn C.

AU - Chappin, Emile J.L.

AU - Iychettira, Kaveri K.

AU - De Vries, Laurens J.

PY - 2017/6/1

Y1 - 2017/6/1

N2 - The cross-border effects of a capacity market and a strategic reserve in interconnected electricity markets are modeled using an agent-based modeling methodology. Both capacity mechanisms improve the security of supply and reduce consumer costs. Our results indicate that interconnections do not affect the effectiveness of a capacity market, while a strategic reserve is affected negatively. The neighboring zone may free ride on the security of supply provided by the zone implementing a capacity mechanism. However, a capacity market causes crowding out of generators in the energy-only zone. A strategic reserve implemented by this region could aid in mitigating this risk.

AB - The cross-border effects of a capacity market and a strategic reserve in interconnected electricity markets are modeled using an agent-based modeling methodology. Both capacity mechanisms improve the security of supply and reduce consumer costs. Our results indicate that interconnections do not affect the effectiveness of a capacity market, while a strategic reserve is affected negatively. The neighboring zone may free ride on the security of supply provided by the zone implementing a capacity mechanism. However, a capacity market causes crowding out of generators in the energy-only zone. A strategic reserve implemented by this region could aid in mitigating this risk.

KW - Capacity market

KW - Cross-border effect

KW - Strategic reserve

UR - http://resolver.tudelft.nl/uuid:c48cedb1-24d7-470f-9746-6e829de493f5

UR - http://www.scopus.com/inward/record.url?scp=85016390364&partnerID=8YFLogxK

U2 - 10.1016/j.jup.2017.03.005

DO - 10.1016/j.jup.2017.03.005

M3 - Article

VL - 46

SP - 33

EP - 47

JO - Utilities Policy: strategy, performance, regulation

T2 - Utilities Policy: strategy, performance, regulation

JF - Utilities Policy: strategy, performance, regulation

SN - 0957-1787

ER -

ID: 23232172