Electricity market-clearing prices and investment incentives : The role of pricing rules

@inproceedings{Herrero2015ElectricityMP,
  title={Electricity market-clearing prices and investment incentives : The role of pricing rules},
  author={Ignacio Herrero and Pablo Rodilla and Carlos Batlle},
  year={2015}
}
a r t i c l e i n f o Pricing rules in wholesale electricity markets are usually classified around two major groups, namely linear (aka non-discriminatory) and non-linear (aka discriminatory). As well known, the major difference lies on the way non-convexities are considered in the computation of market prices. According to the classical marginal pricing theories, the resulting market prices are supposed to serve as the key signals around which capacity expansion revolves. Thus, the… CONTINUE READING