Resource adequacy in competitive electricity markets

Summary form only given. The definition of resource adequacy is "the ability of the electric system to supply the aggregate electrical demand and energy requirements of the customers at all times, taking into account scheduled and reasonably expected unscheduled outages of system elements. In this presentation, we discuss some of the different approaches taken in various markets around the world. We assess the results obtained through the implemented approaches. One of the popular approaches is the introduction of capacity payment, as incentives for investors in the generation sector to provide the funds for the financing for new capacity resources. We analyze the approaches implemented in the electricity market design of several jurisdictions and construct a conceptual framework for the assessment of resource adequacy issues. In particular, we introduce appropriate metrics for the resource adequacy problem. We also discuss a number of challenges in the area of resource adequacy and the research questions under investigation.