Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
999027 | Utilities Policy | 2016 | 7 Pages |
•Survey of experts on US capacity markets.•Use of energy-only markets over capacity markets is recommended for the EU.•Cross-border effects are not a concern but may become so in the future.•US capacity markets have achieved their goals, but inefficiently.
We present a survey of US capacity market experts with the purpose of drawing lessons for the EU. Of the respondents, 41% advised EU member states against implementing capacity markets, while the remaining were neutral or provided suggestions for improving capacity markets. Cross-border effects are currently not a concern but may become so in the future. Imports may dampen prices in a capacity market, but neighbouring markets may also experience pressure to implement a capacity market. The capacity markets in the USA were believed to have achieved their goals with respect to reliability, but in an economically inefficient manner.