For the best experience we recommend upgrading to the latest version of these supported browsers:
I wish to continue viewing on my unsupported browser
For the best experience we recommend upgrading to the latest version of these supported browsers:
I wish to continue viewing on my unsupported browser
09 March 2011
Sean Gammons, Vakhtang Kvekvetsia, Richard Druce, et al.
A NERA team was commissioned by Scottish Power to:
Their analysis suggests that many different forms of capacity can provide back-up for growth in intermittent generation. It also suggests that a market-wide (or at least "broad") capacity mechanism combined with a variable energy price will encourage the provision of such capacity more effectively than a targeted capacity mechanism. The market-wide capacity mechanism is a more efficient remedy than a targeted capacity mechanism for underinvestment caused by investors' distrust of peak energy market prices. Although the EMR raises the problem of "double payment" in relation to a market-wide capacity mechanism, such a problem does not necessarily exist and, even if it does, there are a number of practical solutions that avoid it.