Efficient Pricing and Investment in Energy-only Markets

摘要

1.As long as there is a fixed cost of holding extra capacity, it is not efficient to increase the installed capacity to the level of 100% reliability2.The higher value of consumption to consumers (higher VOLL), the lower the optimal probability of load shedding3.Optimal load shedding = f ( price cap, demand response capacity)3.1 load shedding and demand response capacity: negative correlation3.2 Price cap and DR calling period: negative correlation4. Higher price cap results4.1 shorter high price period4.2 less frequent load shedding4.3 attracts more investment.