Capacity Market Model Considering Flexible Resource Requirements

Xin Fang, Brian Hodge, Fangxing Li

Research output: Contribution to conferencePaperpeer-review

9 Scopus Citations


With increasing installations of renewable generation, such as wind and solar, electric power systems need significant amounts of flexible resources to provide fast responses to mitigate the additional variability and uncertainty in generation. Current market designs have been shown to be insufficient in their mechanisms to compensate flexible resources for their services. Ancillary service markets can cover some of these costs, but they are likely not enough to attract additional flexible resources into the system. Although some independent system operators have started to design markets for flexible resources, their focus is on the short-term operating time horizon. This time horizon has significant real-time price uncertainties for flexible resources and might provide insufficient motivation for them to participate in the market. The capacity market has traditionally been the incentive to invest in new generation resources. Therefore, if a system needs new flexible resources, it is necessary to introduce flexible resource requirements into the capacity market to directly attract more flexible resource investment. This paper proposes a simplified capacity market model including flexible resource requirements. Case studies are examined to validate the proposed method.

Original languageAmerican English
Number of pages5
StatePublished - 21 Dec 2018
Event2018 IEEE Power and Energy Society General Meeting, PESGM 2018 - Portland, United States
Duration: 5 Aug 201810 Aug 2018


Conference2018 IEEE Power and Energy Society General Meeting, PESGM 2018
Country/TerritoryUnited States

Bibliographical note

See NREL/CP-5D00-70162 for preprint

NREL Publication Number

  • NREL/CP-5D00-73328


  • Capacity market
  • Flexible resources
  • Wind uncertainty


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