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Spot market power is
mitigated by putting suppliers and demanders in a more balanced position at the time of the spot
market. The markets also reduce transaction costs and improve liquidity and tran...
This paper examines principles of market design as
applied to electricity markets. I illustrate the principles
with examples of both good and bad designs. I discuss one
of the main design challe...
Using forward markets to improve electricity market design
Electricity market design Forward market Capacity market Firm energy market
2014/11/27
Forward markets, both medium term and long term, complement the spot market for wholesale electricity. The forward markets reduce risk, mitigate market power, and coordinate new investment. In the med...