Upstream producers that possess market power, sell forwards with a lengthy duration to regional electricity companies (REC). As part of the liberalization of the electricity market, RECs have been privatized and exposed to a possible bankruptcy threat if spot prices have fallen below their...

Mots-clés de l'autrice: Electricity Markets ; Multi-Stage Stochastic Programming ; Uncertainty Management ; Decision Making ; Pricing Schemes ; Flexible Demands ; Reserve Markets ; Cost Recovery of Producers ; Renewable Production ; Intra-Day Markets

This paper calls into question the fuel neutrality of capacity mechanisms implemented in liberalized electricity markets. The argument relies on two assumptions likely satisfied in practice, first that investors are risk averse and second that markets in risk are incomplete. For the analysis, we...