Capacity Markets versus Energy-Only Markets: A Comparison under Increasing Wind Penetration

Abstract

We compare the ability to support resource adequacy and revenue sufficiency under two market designs (a capacity market and an energy-only market) under increasing levels of wind energy penetration.~An ideal seven node network with six generators and ten transmission lines provides a test system for our analysis.~Simulations of power market outcomes are evaluated in terms of capacity expansion and revenue sufficiency.