Approaches for resource adequacy

Summary form only given. A well-functioning power market needs to ensure sufficient price signals for new infrastructure investments where they are required. At the same time, the absence of demand elasticity and less than perfect competition have required the use of some form of price mitigation in most power markets. In this presentation we review the performance of selected capacity markets and discuss recent reforms such as the use of demand curves and the incorporation of transmission constraints. We also examine how different designs may fare in terms of their impacts on price signals in load pockets and transmission investment. This is particularly significant in regions where there is adequate generation overall but insufficient transmission infrastructure to meet supply reliably in load pockets.