Why Are We Talking About Capacity Markets?

Research output: NRELPresentation


Revenue sufficiency or 'missing money' concerns in wholesale electricity markets are important because they could lead to resource (or capacity) adequacy shortfalls. Capacity markets or other capacity-based payments are among the proposed solutions to remedy these challenges. This presentation provides a high-level overview of the importance of and process for ensuring resource adequacy, and then discusses considerations for capacity markets under futures with high penetrations of variable resources such as wind and solar.
Original languageAmerican English
Number of pages23
StatePublished - 2017

Publication series

NamePresented at the EU/US Workshop on Market Design and Operation with Variable Renewables, 16-17 May 2017, Fredericia, Denmark

NREL Publication Number

  • NREL/PR-6A20-68593


  • capacity markets
  • capacity payments
  • market failure
  • missing money
  • reliability
  • resource adequacy
  • revenue sufficiency


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