This paper presents the application of a mechanism that provides incentives to promote transmission network expansion in the electricity system of the Ontario province. Such mechanism combines a merchant approach with a regulatory approach. It is based on the rebalancing of a two-part tariff...

This paper studies resource adequacy, i.e. the market design dilemma of ensuring enough generation capacity in the long run. International experiences have shown that it is difficult that the market alone provides incentives to attract enough investment in capacity reserves. We analyze various...