production capacity. In a zonal pricing electricity market, the one proposed by the European Commission to integrate the European … electricity markets, I analyze the effects that investments in transmission and production capacity have on consumer welfare and …

market effectively caps peak prices in the wholesale electricity market and thus reduces incentives for investments in demand … similar overall electricity supply costs and ensuring a similar level of security of supply. The advanced reliability reserve …

This paper calls into question the fuel neutrality of capacity mechanisms implemented in liberalized electricity …