State-of-the-art of studies on generation capacity adequacy in electricity market environment. Part one. Energy-only market

Gang Lu, Fushuan Wen, Yusheng Xue, C. Y. Chung, K. P. Wong

Research output: Journal article publicationJournal articleAcademic researchpeer-review

10 Citations (Scopus)

Abstract

It is a widely-discussed important issue to determine whether generation capacity adequacy could be ensured by the energy-only market approach. First, a theoretical investigation is made for this market mode under perfect competition assumption, and it is concluded that there is no enough theoretical evidence that the energy-only market approach could ensure the generation capacity adequacy. Secondly, actual operation performance of those electricity markets employing this market mode is summarized, and it is found that there is some difficulty for this market mode to induce enough generation investment. Both the theoretical results under perfect competition assumption and the operating performance in an actual electricity market environment illustrate that it is difficult for the energy-only market to ensure generation capacity adequacy. The analysis is helpful to the comprehensive understanding of the features of the generation capacity adequacy problem.

Original languageEnglish
Pages (from-to)5-10
Number of pages6
JournalDianli Xitong Zidonghua/Automation of Electric Power Systems
Volume32
Issue number20
Publication statusPublished - 25 Oct 2008

Keywords

  • Electricity market
  • Energy-only market
  • Generation capacity adequacy

ASJC Scopus subject areas

  • Control and Systems Engineering
  • Energy Engineering and Power Technology
  • Computer Science Applications
  • Electrical and Electronic Engineering

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