To ensure security of supply in liberalized electricity markets, different types of capacity mechanisms are currently … capacity payments. In both countries, competitive firms invest in generation capacity before selling electricity on the spot … electricity. …

. The adequate capacity mix can only be achieved by accounting for the current transition phase to electricity generation …

production capacity. In a zonal pricing electricity market, the one proposed by the European Commission to integrate the European … electricity markets, I analyze the effects that investments in transmission and production capacity have on consumer welfare and …