Template-Type: ReDIF-Article 1.0
Author-Name:  William W. Hogan
Title:  Electricity Scarcity Pricing Through Operating Reserves
Classification-JEL: F0
Pages:  
Volume:  Volume 2
Issue:  Number 2
Year:  2013
Abstract:  Suppressed prices in real-time markets provide inadequate incentives for both generation investment and active participation by demand bidding. An operating reserve demand curve developed from first principles would improve reliability, support adequate scarcity pricing, and be straightforward to implement within the framework of economic dispatch. This approach would be fully compatible with other market-oriented policies. Better scarcity pricing would also contribute to long-term resource adequacy. 
Handle: RePEc:aen:eeepjl:2_2_a04
File-URL: http://www.iaee.org/en/publications/eeeparticle.aspx?id=48
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