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Navigating Energy Market Dynamics
This chapter explores the intricate relationship between capacity and energy pricing in electricity markets, highlighting common misconceptions and the necessity for integrated market design. It features insights from industry experts on the Skagit Hydro project and emphasizes the importance of risk management in stabilizing energy pricing. The discussion also critically addresses the notion that energy prices can't incorporate capacity value, advocating for a deeper understanding of energy service delivery in the context of the energy transition.