Electricity market study reveals potential network collapses and reserve requirements impact.
The article explores how to set optimal prices and investments in the electricity market for consumers who don't react to price changes. It looks at what conditions are needed for competitive markets to work well and what happens when certain assumptions are relaxed. The study also examines the impact of price caps and capacity requirements on the market. It analyzes how network failures affect reserve needs and whether market prices lead to enough investment in power generation to meet those needs.