A model to investigate capacity market sensitivities in Italian framework

Abstract

In the framework of energy transition, targets of power system adequacy point out the necessity of specific mechanisms for individuation and remuneration of sources of flexibility. In this outline, the Italian energy market has recently been integrated by a capacity market platform, based on reliability options for expected generation availability at peak, where the demand curve reflects target levels of loss of load expectation. In this paper, a model of Italian capacity market is introduced, whose solution process is based on sequential process of zonal equilibrium. Criticality of data collection for the determination of demand curve, possible capacity bids and zonal interactions are discussed. With the aim of investigating the impact on market solutions and on selected technologies, sensitivity analysis on different factors is carried out.