Learning from electricity markets: How to design a resilience strategy Articles uri icon

publication date

  • September 2022

volume

  • 168

International Standard Serial Number (ISSN)

  • 0301-4215

Electronic International Standard Serial Number (EISSN)

  • 1873-6777

abstract

  • (copyright) 2022 Elsevier LtdSecurity of supply concerns are at the forefront of the public debate. The pandemic and post-pandemic times have demonstrated that preparing for global shocks requires the quick availability of some essential goods and services, including energy. Private incentives are typically insufficient for an economy to be prepared for rare events with large negative impacts. Instead, governments and preferably supranational institutions should implement mechanisms that make sure that prevention, detection and mitigation measures are taken. The economics of electricity capacity mechanisms provides valuable lessons for the provision of essential goods in such events, which need to be complemented with other elements aimed at mitigating the causes and impacts of potential crises.

keywords

  • detection; electricity capacity markets; essential goods; mitigation; prevention; resilience