Fulvio Fontini, "Pricing reliability options under different electricity price regimes".
From Raffaella Allocca on September 3rd, 2020
In this paper, published in Energy Economics, Fulvio Fontini (dSEA University of Padova), Luisa Andreis (WIAS-Weierstrass Institute, Berlin, Germany), Maria Flora (Department of Economics, University of Verona) and Tiziano Vargiolu (Department of Mathematics “Tullio Levi Civita”, University of Padova) provide a comprehensive mathematical treatment of Reliability Options. Reliability Options are capacity remuneration mechanisms aimed at enhancing security of supply in electricity systems. They can be framed as call options on electricity sold by power producers to System Operators.
Read the full abstract on: https://www.sciencedirect.com/science/article/pii/S014098832030044X