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The realization of an Internal Electricity Market in Europe is currently, on the one hand, progressing, in particular thanks to the wide-spread implementation of market coupling solutions for cross-border congestion management. On the other hand, diverging national market designs pose a threat to the continuation of this process. Given the challenges to electricity market design in a multi-regional...
The effectiveness of the energy-only market (EOM) in providing sufficient incentives for investments is intensively discussed in Europe. While supporters claim that an improved EOM can guarantee generation adequacy, energy suppliers in particular favor the introduction of a capacity market to finance power plant investments. However, there is a lack of quantitative assessment of market design options...
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