Funding entity Iberdrola S.A
Reliability options are a kind of reliability product to be traded in a capacity remuneration mechanism that show several benefits in comparison to other products, especially in terms of reduced interference with short-term markets. At a time in which the role of capacity mechanisms is envisioned to grow, several experts signalled reliability options as a potential reference for the European Internal Energy Market. This project presents a comprehensive analysis of all the design elements of reliability options, listing possible alternatives for each of them, taking advantage of the international experiences of those systems that intrduced reliability options in the past (Colombia, ISO New England, Ireland, Italy, and Belgium). The project also assesses the potential interaction the reliability options may have with other measures that are being discussed in the framework of a possible reform of the European electricity market.
Layman's summary: The project assess the design elements of reliability options, a type of reliability product to be traded in capacity remuneration mechanisms, and their potential introduction in the Spanish electricity market.
2022_IberRO
