demand curve – Optimization Online

A Marginal Reliability Impact Based Accreditation Framework for Capacity Markets

Published: 2026/01/24, Updated: 2026/02/15

Energy Capacity accreditation, capacity market, demand curve, Effective Load Carrying Capability (ELCC), Marginal Reliability Impact (MRI), MRI Capacity (MRIC), MRI hours, Resource Adequacy Assessment (RAA)

This paper presents a Marginal Reliability Impact (MRI) based resource accreditation framework for capacity market design. Under this framework, a resource is accredited based on its marginal impact on system reliability, thus aligning the resource’s accreditation value with its reliability contribution. A key feature of the MRI-based accreditation is that the accredited capacities supplied by … Read more

Economic Interpretation of Demand Curves in Multi-product Electricity Markets

Published: 2020/02/06, Updated: 2020/02/26

Eugene Litvinov

Feng Zhao

Tongxin Zheng

Finance and Economics, Multidisciplinary Design Optimization demand curve, economic interpretation, electricity markets, fixed requirement, iterative clearing, penalty factor, reliability, sequential clearing, social surplus optimization

In the absence of direct demand-side bids for certain reliability products in the wholesale electricity markets, Independent System Operators (ISOs) traditionally use fixed demand requirements with penalty factors to clear the market. This approach does not allow proper tradeoffs between reliability and cost due to the inelasticity of the fixed requirements. Therefore, ISOs have been … Read more