Challenges in Capacity Market Design

While capacity markets have been implemented in several regions, many challenging questions remain in the design arena, for instance: – What primary purposes should a capacity market serve? – How is a capacity market design compared to an energy-only design? – What is the capacity demand in the absence of demand bids from market participants? – What quantity of capacity can a resource offer into the capacity market? – How to define and measure the capacity obligation? – How to price the capacity product when the market clearing problem is nonconvex? This talk will cover some of these capacity market design topics. Some existing designs will be used as examples to facilitate the discussion and demonstrate the challenges. Speaker(s): Feng Zhao Virtual: https://events.vtools.ieee.org/m/460754