Our European colleagues are holding a very informative webinar series this week called "Vision for the future of the power system", where various topcs are being discussed that directly relate to the energy transition.
I especially like the presentation titled "Market design options for the future" where the concept of Capacity subscriptions is introduced, "Resource adequacy and Investment signals" in slides 27-34. This concept is similar to the Always on Capacity Exchange concept, with regard to: "Year ahead, capacity market clears based on suppliers' offers and consumers' preference for uninterrupted supply" Presumably with a uniform clearing price for the various types of capacity (i.e. essential grid services) needed "To address resource adequacy in a comprehensive manner, the demand for capacity of a given capacity mechanism could be split in different components, with specific flexibility requirements applied"
- Baseload capacity: no specific flexibility requirement
- Ramping capacity: flexible resources able to ramp up/down in steeper hours of residual load curve
- Peaking capacity: residual flexible resources needed only at peak demand periods