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Energy-Only vs Capacity Markets: What Each Rewards

Energy-Only vs Capacity Markets: What Each Rewards

Sep 24, 2026 | Policy & Regulations, Renewable Energy, Smartgrids

An energy-only market pays a power plant for one thing: the electricity it actually generates, priced moment to moment. A capacity market pays it twice — once for that energy, and again, years in advance, simply for promising to be available when demand peaks. That...