capaciteitveilingen

Capaciteitveilingen, often translated as capacity auctions, are market mechanisms used primarily in the energy sector to ensure the availability of sufficient electricity generation capacity. The goal is to prevent power shortages by incentivizing generators to remain online or to build new capacity. These auctions are typically conducted by transmission system operators or market regulators.

In a capacity auction, capacity providers (e.g., power plant owners, demand response aggregators) bid to offer their capacity for a future period, usually one year ahead. The auction determines the clearing price for this capacity. If a provider's bid is accepted, they receive a payment for making their capacity available, regardless of whether they actually generate electricity during that period. This payment is intended to cover their fixed costs and provide a return on investment, thus ensuring they do not retire their assets prematurely.

The demand side in these auctions is the system operator, who determines the total amount of capacity needed to guarantee system reliability. The auction runs until the total offered capacity meets the required amount at the lowest possible price. Countries like the UK, France, and the US have implemented various forms of capacity mechanisms. The design of these auctions, including eligibility criteria, auction duration, and penalty mechanisms for non-delivery, can significantly impact their effectiveness and market outcomes.