Liberalized electricity markets often include resource adequacy mechanisms that require consumers to contract with generation resources well in advance of real-time operations. While administratively defined mechanisms have most commonly taken the form of a capacity obligation, efficient markets...

A concern persistent in scarcity-based market designs for electricity over many years has been the illiquidity of markets for long-term contracts to hedge away volatile price exposures between generators and consumers. These missing markets have been attributed to a range of factors including...

This paper calls into question the fuel neutrality of capacity mechanisms implemented in liberalized electricity markets. The argument relies on two assumptions likely satisfied in practice, first that investors are risk averse and second that markets in risk are incomplete. For the analysis, we...

Non-convex markets, such as those organized by electricity system operators, lack uniform clearing prices. To help resolve the incentive compatibility issues that arise when clearing these markets, operators have introduced a variety of price formation and uplift payment schemes. We investigate...

In most liberalized electricity markets, flaws in short-term price formation have led to a "missing money" problem wherein average energy prices are too low to support an efficient level of capacity. Recent growth of wind and solar generation has exposed another category of flaws related to...