MIT Libraries logoDSpace@MIT

MIT
View Item 
  • DSpace@MIT Home
  • Center for Energy and Environmental Policy Research
  • Working Papers
  • View Item
  • DSpace@MIT Home
  • Center for Energy and Environmental Policy Research
  • Working Papers
  • View Item
JavaScript is disabled for your browser. Some features of this site may not work without it.

Competitive electricity markets and investment in new generating capacity

Author(s)
Joskow, Paul L.
Thumbnail
Download2006-009.pdf (204.2Kb)
Other Contributors
Massachusetts Institute of Technology. Center for Energy and Environmental Policy Research.
Metadata
Show full item record
Abstract
Evidence from the U.S. and some other countries indicates that organized wholesale markets for electrical energy and operating reserves do not provide adequate incentives to stimulate the proper quantity or mix of generating capacity consistent with mandatory reliability criteria. A large part of the problem can be associated with the failure of wholesale spot market prices for energy and operating reserves to rise to high enough levels during periods when generating capacity is fully utilized. Reforms to wholesale energy markets, the introduction of well-design forward capacity markets, and symmetrical treatment of demand response and generating capacity resources to respond to market and institutional imperfections are discussed. This policy reform program is compatible with improving the efficiency of spot wholesale electricity markets, the continued evolution of competitive retail markets, and restores incentives for efficient investment in generating capacity consistent with operating reliability criteria applied by system operators. It also responds to investment disincentives that have been associated with volatility in wholesale energy prices, limited hedging opportunities and to concerns about regulatory opportunism.
Date issued
2006
URI
http://hdl.handle.net/1721.1/45055
Publisher
MIT Center for Energy and Environmental Policy Research
Other identifiers
2006-009
Series/Report no.
MIT-CEEPR (Series) ; 06-009WP.
Keywords
Electric utilities, Electric power consumption, Electric power-plants

Collections
  • Working Papers

Browse

All of DSpaceCommunities & CollectionsBy Issue DateAuthorsTitlesSubjectsThis CollectionBy Issue DateAuthorsTitlesSubjects

My Account

Login

Statistics

OA StatisticsStatistics by CountryStatistics by Department
MIT Libraries
PrivacyPermissionsAccessibilityContact us
MIT
Content created by the MIT Libraries, CC BY-NC unless otherwise noted. Notify us about copyright concerns.