Reliability market
Planning our electric future: a White Paper for secure, affordable and low-carbon electricity, Glossary, published by the Department of Energy & Climate Change on 14 July 2011, defines a Reliability Market as: ‘A type of Capacity Market (which is a type of Capacity Mechanism). In a Reliability Market, what is purchased from providers (which could be generators or suppliers of storage or demand side response) is a ‘reliability contract’, essentially a call option. The reliability contract provides a hedge for the holder, enabling the holder to purchase energy at no more than the strike price or, if energy is simply not available, to be compensated for the missing energy. In return for this hedge, the provider receives a payment (the option premium) which provides a reliable source of income.’
[edit] Related articles on Designing Buildings
Featured articles
Check out some of the best features and news from Designing Buildings as well as key stories from around the web.
ECA welcomes plans to strengthen subcontractor quality control.
Combining mid-career qualifications with experience broadens career opportunities.
Why being a mentor can help your career.
Channel 4 broadcaster to host 125th anniversary ceremony.
Listed structures on the rail network
Heritage interests and operational requirements must be balanced.
Historic England publishes research into embodied carbon when retrofitting traditional buildings.
New Prime Minister delivers on ECA call for cut in electricity costs.
CIOB reacts to the announcement of Andy Burnham as Prime Minister.
Heritage and conservation science workforce survey - Have your say.
England's Suburbs 1820-2020. Book review.
New, more proportionate and targeted approach for higher-risk building assessments.
Government brings British Steel into public ownership.
Comments
[edit] To make a comment about this article, or to suggest changes, click 'Add a comment' above. Separate your comments from any existing comments by inserting a horizontal line.