Seminar by Fulvio Fontini

SALA SEMINARI – 1° PIANO, PALAZZO LEVI CASES, VIA DEL SANTO 33 - ORE 12.30

29.01.2019

Seminar by Fulvio Fontini, dSEA.

Title: "Investing in electricity production under a reliability options scheme"

Abstract: Reliability options are capacity remuneration mechanisms used to enhance the security of supply in electricity systems. When a power producer writes a reliability option, it agrees to set a cap in the price of electricity that he cashes. In return, the system operator, i.e., the party that is buying the option, agrees to pay to the option issuer a given amount as reimbursement. In this paper we analyze how reliability options affect the timing and value of investments in the energy sector and we show under which conditions reliability options can be used as investment stimuli.