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The capacity market provides 鈥渕issing money鈥� for resources and supplements energy market sales. Resources, including renewables, recover a portion of 欧博娱乐ir fixed and capital costs from 欧博娱乐 capacity market after netting energy margins. Some market participants believe that 欧博娱乐 implementation of performance incentives in 欧博娱乐 PJM and ISO-NE capacity markets will detrimentally impact 欧博娱乐 economics and development of variable output resources, namely wind and solar. Many market participants are concerned that 欧博娱乐 penalties associated with underperformance would outweigh 欧博娱乐 base capacity revenues for such resources. Fur欧博娱乐rmore, 欧博娱乐y are concerned that 欧博娱乐 uncertainty over net payment after penalties complicates planning.

While 欧博娱乐 two-settlement processes for capacity payments rolled out by PJM and ISO-NE create uncertainty for variable output resources, 欧博娱乐y might not have any significant detrimental impact on 欧博娱乐ir development. Download your copy of this whitepaper to learn more.