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regulation. There are three related issues at hand. First, should ownership be private or public? Second, what operations should … be integrated and where is competition feasible? Third, where is regulation necessary and can it be made more efficient …, introduced market competition for power purchases, and implemented incentive regulation for monopolized transmission and …
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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...
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