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Incentive based energy market design

descriptionPublicationkeyboard_double_arrow_right Article , Journal 01 Sep 2011Publisher:Elsevier BVJournal:European Journal of Operational Research, volume 213, pages 422-429 (issn: 0377-2217,

Authors: Gabriella Muratore; Gabriella Muratore;

doi: 10.1016/j.ejor.2011.03.002

Incentive based energy market design

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Abstract

Current energy market designs and pricing schemes fail to give investors the appropriate market signals. In particular, energy prices are not high enough to attract investors to build new or maintain existing power capacity. In this paper we propose a method to compute second-best Pareto optimal equilibrium prices for any market exhibiting non-convexities and, based on this result, an energy market design able to restore the correct energy price signals for supply investors.

Related Organizations

Université Catholique de Louvain
Belgium
Eindhoven University of Technology
Netherlands

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