Electricity market design in the context of the energy turnaround. The role of capacity mechanisms

This publication starts out by presenting the fundamentals of the liberalised electricity market and goes on to focus on price formation in the electricity wholesale market. After this it investigates the degree to which lacking willingness to invest in conventional production technologies poses a danger to long-term security of supply. The main task undertaken in this study has been to present and analyse various capacity mechanisms that could act as incentives, reviving the willingness to invest. The study closes with a summarising conclusion.