Addressing Adequacy Concerns with Contracts: Review of Past, Present and Possible Future

Research output: Research - peer-reviewArticle in proceedings – Annual report year: 2018

DOI

View graph of relations

Several papers propose using call options (i.e. a contract to sell energy at a pre-determined price in the future) as a mechanism to insure new investments and adequate capacity in electricity markets. Other papers have since extended on this idea. However, it is cumbersome for newcomers to get an overview of these capacity remuneration mechanism efforts, chiefly because the papers use different names (“reliability options”, “option contracts” and “forward reliability markets” to name a few) for what is the same mechanism in its basic form. This paper provides a review of these papers, presents an intuitive introduction to the basic underlying mechanism, and highlights the differences between the various approaches. In addition, this paper points out where the future research of this topic might be heading.
Original languageEnglish
Title of host publicationProceedings of the 2018 15th International Conference on the European Energy Market (EEM)
Number of pages6
PublisherIEEE
Publication date2018
Pages1-6
DOIs
StatePublished - 2018
Series2018 15th International Conference on the European Energy Market (eem)
ISSN2165-4093
CitationsWeb of Science® Times Cited: No match on DOI

    Research areas

  • Call Options, Reliability Contracts, Option Contracts, Reliability Options, Backstop Call Option Obligations, Forward Reliability Market, Capacity Remuneration Mechanism, Adequacy, Literature Review
Download as:
Download as PDF
Select render style:
APAAuthorCBE/CSEHarvardMLAStandardVancouverShortLong
PDF
Download as HTML
Select render style:
APAAuthorCBE/CSEHarvardMLAStandardVancouverShortLong
HTML
Download as Word
Select render style:
APAAuthorCBE/CSEHarvardMLAStandardVancouverShortLong
Word

ID: 154949531