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...

One objective of retail electricity markets is to enable end-use consumers to incorporate their reliability preferences into their purchasing decisions. This paper investigates if and how this can be done in electricity markets with a capacity requirement. It integrates the standard loss of load...