arXiv · 2602.18365
A Marginal Reliability Impact Based Accreditation Framework for Capacity Markets
Abstract
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 accreditation value with its reliability contribution. A key feature of the MRI based accreditation is that the accredited capacities supplied by different resources to the capacity market are substitutable in reliability contribution, a desired feature of homogeneous products. Moreover, with MRI based capacity demand, substitutability between supply and demand for capacity is also achieved. As a result, a capacity market with the MRI based capacity product can better characterize the underlying resource adequacy problem and lead to more efficient market outcomes.
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Feng Zhao, Tongxin Zheng, Dane Schiro, Xiaochu Wang. 2026-02-20. A Marginal Reliability Impact Based Accreditation Framework for Capacity Markets. https://arxiv.org/abs/2602.18365
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