Review of capacity market fundamentals for the Alberta Utilities Commission

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For the Alberta Utilities Commission, CRA experts developed a report that examines the economic and theoretical foundations of capacity markets. This report discusses the various causes of the resource adequacy and missing money problems, and the various approaches proposed to address the issues, one of which is the implementation of capacity markets. The report also presents basic capacity market design principles and features that may be considered to achieve efficient outcomes, thereby realizing the benefits associated with competition. This report was commissioned to inform Alberta’s effort to develop a capacity market for the province.

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