Read more
"Imagine a scenario in which there is great concern for maintaining an adequate number of grocery stores to serve the food-purchasing public around the clock, so that consumers always have access to open grocery stores to buy food. In response to this concern, a new revenue stream is created for grocery stores. Previously grocery stores earned their revenues entirely from consumer purchases of food. Now consumers will also be required to pay in advance to ensure that grocery stores will be open for business twenty-four hours per day"--
List of contents
1. Introduction; 2. Capacity markets primer; 3. Restructured electricity markets and regional transmission organizations; 4. Reliability and the 'missing money' problem; 5. Capacity policies; 6. First-generation capacity markets; 7. Second-generation capacity markets; 8. Capacity market demand; 9. Capacity market supply; 10. Capacity market design; 11. Market power; 12. Minimum offer price rules; 13. The Texas alternative; 14. Conclusion.
About the author
Todd Aagaard is Professor of Law at the Villanova University Charles Widger School of Law. He teaches and writes in environmental law, energy law, and administrative law. Prior to becoming an academic, he worked as an attorney in the Justice Department's Environment and Natural Resources Division.Andrew N. Kleit is Professor of Energy and Environmental Economics and the founding director of the program in Energy Business and Finance at Penn State University. His writings have examined competition issues in the energy sector. He has worked for several government agencies, including the Federal Energy Regulatory Commission and the Federal Trade Commission.
Summary
Capacity markets are a large part of electricity markets, costing consumers billions of dollars and creating deep controversy. But understanding of capacity markets is severely limited, and they have rarely been examined in depth. This is the first comprehensive analysis of these markets and their economic, legal, and political aspects.
Foreword
The first comprehensive analysis of capacity markets, an increasingly important and controversial component of electricity markets.
