This paper argues that electricity market reform – particularly the need for complementary mechanisms to remunerate … investment, the priority should be to identify the roots of the problem. The lack of demand side response, short-term reliability … distort long-term investment incentives. The introduction of a capacity mechanism should come as an optional supplement to …

decentralised energy-only New Electricity Trading Arrangements (NETA) market framework, we compare the two designs in terms of … investment incentives. We review the biases of the Pool capacity payments design, the drought of investment following the …

imperfectly competitive wholesale electricity market. Theoretical predictions of the model are tested on data from the Nordic …

imperfectly competitive wholesale electricity market. Theoretical predictions of the model are tested on data from the Nordic …

Motivated by the regulatory debate in electricity markets, we seek to understand how market design affects market … performance through its impact on investment incentives. For this purpose, we study a two-stage game in which firms choose their … investment incentives at the margin are poorer; indeed, under reasonable assumptions on the shape of the demand distribution, the …

Most electricity systems face contractual fixed consumer prices in the short term, that is, load and price are fixed …

Britain was the exemplar of electricity market reform, demonstrating the importance of ownership unbundling and … subsequent mergers. Competition arrived just as the Pool was replaced by New Electricity Trading Arrangements (NETA) intended to …

We analyse how the market design influences the bidding behavior in multi-unit auctions, such as wholesale electricity …

uncertain costs and are uncertain about the availability of production units, as in wholesale electricity markets. We find that …