Capacity Market in US

Sammanfattning

As the transition from the use of fossil fuels torenewable sources takes place, consumption of electricity willgreatly increase. The shift in energy sources will have a deepimpact on how financial decisions in the grid will be made. Toensure that the necessary investments are made to meet the newneeds, many network administrators have used different typesof markets for capacity. This project reviews how the networkadministrator PJM in the US uses capacity markets to secure thesupply of electricity and stability in the grid. A literature studywas conducted together with a market simulation and the resultsfrom the simulation shows that the use of a separate capacitymarket is a successful concept for securing future electricitysupply and stability in the grid.