The Demand for Operating Reserves : Key to Price Spikes and Investment

@inproceedings{StevenStoftTheDF,
  title={The Demand for Operating Reserves : Key to Price Spikes and Investment},
  author={C StevenStoft}
}
  • C StevenStoft
Under regulation, operating-reserve policy and investment policy are completely separate. In a market, they are tightly linked through expectations. Currently, regulators and engineers intervene in markets to determine how much will be paid when operating reserves are in short supply. These prices determine the revenue stream that pays the capital costs of new peakers and pays an equal amount toward the capital costs of all other generators. In this way, operating-reserve and price-cap policies… CONTINUE READING
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