Friðrik Már Baldursson; Bellenbaum, Julia; Lazarczyk, Ewa - 2017
We develop an analytical model to derive the competitive market equilibrium for electricity spot and reserve markets … under stochastic demand and uncertain renewable electricity generation. We then derive the welfare-optimal provision of … reserves. At rst-best, cost of reserve capacity is balanced against expected cost of outages. The rst-best market equilibrium …
