Beyond Capacity: Contractual Form In Electricity Reliability Obligations

  title={Beyond Capacity: Contractual Form In Electricity Reliability Obligations},
  author={Hang Shu and Jacob Mays},
  journal={SSRN Electronic Journal},
Liberalized electricity markets often include resource adequacy mechanisms that require consumers to contract with generation resources well in advance of real-time operations. While administratively defined mechanisms have most commonly taken the form of a capacity obligation, efficient markets would feature a broad array of arrangements adapted to the risk profiles and appetites of market participants. This article considers how the financial hedge embedded in alternative resource adequacy… 

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