The power system capacity adequacy has public good features that cannot be entirely solved by electricity markets. Regulatory intervention is then necessary and established methods have been used to assess adequacy and help regulators to fix this market failure. In regional electricity markets,...

This paper deals with theoretical aspects of long-term electricity supply security. Market prices and contractual arrangements on the physical and financial electricity markets do not allow the creation of sufficient incentives to invest in adequate capacity for guaranteeing the appropriate...

In Public Economics, the simple supply mechanism for a collective good is the centralised provision by government, and paid by all beneficiaries through a small and targeted tax. In the case of capacity adequacy in power supply, which could be considered as a collective good, two solutions of...

Market prices make it possible to realise returns on capital investments in the electricity sector, but these prices may not necessarily be politically or socially acceptable. As a result, explicit or implicit price caps may be established. If these caps are effective, they may result in loss of...