Publication

This working paper on electricity markets is part of the INDES (Insuring against Disruptions of Energy Supply) project, a project financed by the European Commission. It presents an overview of the reasons why unregulated markets for the production of electricity cannot be expected to invest sufficiently in generation capacity on a continuous basis. The authors end this paper by outlining several methods that have been proposed to stabilize the market, which provide better incentives to generation companies and consumers alike.