capacity markets

Market Power and Incentive-Based Capacity Payment Mechanisms

Capacity markets provide guaranteed payments to electricity generation unit owners for having the firm capacity to produce electricity. Historically, these markets are plagued by the weak incentives they provide for plants to be available during …

Diagnosing the Causes of the Recent El Niño Event and Recommendations for Reform

In this report we identify the key drivers of observed market outcomes in the Colombian electricity supply industry during the fourth quarter of 2015 and first quarter of 2016, the time period covered by the most recent El Niño Event. We analyze how …