Capacity expansion in liberalized electricity markets with locational pricing and renewable energy investments
研究了自由化电力市场中容量扩张的长期激励，分析了市场设计对能源价格、容量价格和社会福利的影响，并探讨了容量市场如何促进可再生能源投资。
We study the long-term incentives for expanding production capacity in liberalized electricity markets. How does electricity market design affect the prices of energy, capacity, and social welfare? And how is this capacity market affected by the geographical features of the electricity market? Should the system operator design the capacity market to provide incentives for investment in renewable technologies? We analyze the conditions under which capacity payments and markets enable higher investment relative to an energy-only market in which generators sell electricity but not capacity. We show that capacity markets benefit consumers and investors by increasing investment and reliability and capping peak prices. We prove that generators benefit from owning a portfolio of peak and baseload plants and show that investment strategies must consider regional capacity auctions. We demonstrate that a capacity payment per technology increases investment in renewable technologies and leads to the early retirement of older, polluting technologies. Regional capacity investment targets effectively decrease energy prices and significantly increase investment in renewable technologies.