A capacity mechanism next to the energy-only market provides necessary investment incentives that spot markets lack. The adequate capacity mix can only be achieved by accounting for the current transition phase to electricity generation with a growing share of renewables. We show that an...

Renewable energy generation at the point of consumption (i.e., distributed generation) reducesconsumer's electricity expenditure, and eliminates the cost, complexity, and inefficiency associatedwith power transmission and distribution. In this paper, we address the problem of how aconsumer...