TY - JOUR
T1 - Capacity payments in a cost-based wholesale electricity market
T2 - the case of Chile
AU - Galetovic, Alexander
AU - Muñoz, Cristián M.
AU - Wolak, Frank A.
N1 - Publisher Copyright:
© 2015 Elsevier Inc.
PY - 2015/12
Y1 - 2015/12
N2 - A comparison of the generator revenue and market efficiency implications of an energy and capacity payment market relative to an energy-only market for the cost-based Chilean electricity supply industry finds that, while monthly revenue volatility for generation units is significantly higher for the energy-only market, this is almost entirely explained by an increase in short-term energy price volatility. This increased short-term price volatility provides incentives for market participant behavior that enhances market efficiency and system reliability.
AB - A comparison of the generator revenue and market efficiency implications of an energy and capacity payment market relative to an energy-only market for the cost-based Chilean electricity supply industry finds that, while monthly revenue volatility for generation units is significantly higher for the energy-only market, this is almost entirely explained by an increase in short-term energy price volatility. This increased short-term price volatility provides incentives for market participant behavior that enhances market efficiency and system reliability.
UR - http://www.scopus.com/inward/record.url?scp=84969228227&partnerID=8YFLogxK
U2 - 10.1016/j.tej.2015.10.011
DO - 10.1016/j.tej.2015.10.011
M3 - Article
AN - SCOPUS:84969228227
SN - 1040-6190
VL - 28
SP - 80
EP - 96
JO - The Electricity Journal
JF - The Electricity Journal
IS - 10
ER -