Capacity mechanisms: needs, solutions and state of affairs

Capacity Mechanisms provide a potential additional revenue in addition to revenues from the energy market. Large-scale introduction of wind and solar generation in the power system has triggered renewed focus on such mechanisms. The report reviews the arguments for and against Capacity Mechanisms, and gives an innovative classification of various existing and proposed solutions, shedding better light on their common and specific properties. The report includes systematic descriptions of Capacity Mechanisms in twelve countries and jurisdictions.