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...

The role of distributed energy resources (DERs) in future power systems is becoming increasingly important due to the ongoing transformation of the electricity sector towards carbon neutrality and higher decentralization. As changes in the demand side continue, such as the adoption of electric...