Batlle, C.; Vázquez, C.

doi:10.1016/j.enpol.2007.04.002

Title:

Enhancing power supply adequacy in Spain: Migrating from capacity payments to reliability options

Authors:

C. Batlle , C. Vázquez , M. Rivier , I.J. Pérez-Arriaga

Keywords:

Electricity restructuring; Electricity markets regulation; Security of supply

Research topics

*Energy markets design and regulation

Abstract:

There has been total unanimity about the vital importance of reliability of supply since the beginning of the electricity sector deregulation process. This paper describes the procedure proposed by Pérez-Arriaga et al. [2005. White paper for the reform of the regulatory scheme of the power generation in Spain. For the Ministry of Industry, Tourism and Trade of Spain (in Spanish)] to improve upon the current scheme to guarantee a reasonable reserve margin, the capacity payment mechanism. This alternative design introduces improvements aimed at guaranteeing at least a minimum capacity reserve margin, as well as at providing a strong incentive for generating units to be available when needed, namely, in situations when supply is likely to be insufficient to meet the total demand.

Reference:

Energy Policy
Volume: 35 Number: 9 Pages: 4545-4554

Publication date:

September 2007

DOI reference: