Many electricity markets use capacity mechanisms to support generation owners. Capacity payments can mitigate imperfections associated with "missing money" in the spot market and solve transitory capacity shortages caused by investment cycles, regulatory changes, or technology shifts. We discuss...

Sweden faces a major challenge in the next decades because of a projected increase in electricity demand, aging supply infrastructure and the transition to an energy system with a substantial share of weather-dependent production. This paper discusses the incentives to invest in production...

Sweden faces a major challenge in the next decades because of a projected increase in electricity demand, aging supply infrastructure and the transition to an energy system with a substantial share of weather-dependent production. This paper discusses the incentives to invest in production...

As redispatch costs and their associated distributional impacts continue to rise, the discussion on reconfiguring bidding zones in European power markets persists. However, determining an appropriate bidding zone configuration is a non-trivial task, as it must prove beneficial under varying...

As redispatch costs and their associated distributional impacts continue to rise, the discussion on reconfiguring bidding zones in European power markets persists. However, determining an appropriate bidding zone configuration is a non-trivial task, as it must prove beneficial under varying...

Derzeit wird diskutiert, ob der deutsche Strommarkt genügend Anreize für Investitionen in Kraftwerke und deren Verbleiben am Netz bietet, um die Versorgungssicherheit zu gewährleisten. Vorschläge, die Energieversorgung weiter abzusichern, beinhalten zum Teil umfassende Zahlungen an die...

Derzeit wird diskutiert, ob der deutsche Strommarkt genügend Anreize für Investitionen in Kraftwerke und deren Verbleiben am Netz bietet, um die Versorgungssicherheit zu gewährleisten. Vorschläge, die Energieversorgung weiter abzusichern, beinhalten zum Teil umfassende Zahlungen an die...

Short-term electricity markets are key to an efficient production by generation units. We develop a two-period model to assess different bidding formats to determine for each bidding format the optimal bidding strategy of competitive generators facing price-uncertainty. We compare the results...

Auctions with endogenous rationing have been introduced to stimulate competition. Such (procurement) auctions reduce the volume put out to tender when competition is low. This paper finds a strong negative effect of endogenous rationing on participation when bid-preparation is costly,...