Changes in Supply Elasticities Due to Restructuring
p. p. 19
ormance-based rate. Even if the market prices fall below operation and maintenance costs, owners of "must-run" generation may have no incentive to reduce output or to cease operating the power plants. As a result of restructuring, the scop...
AI summary Restructuring in the electricity sector is expected to change market structures, introduce new financial instruments, and increase supply elasticities by reducing investor risks. However, due to high capital costs and long lead times, generation supply may remain inelastic unless prices rise significantly. Alternative responses, such as transmission upgrades and energy efficiency, may also emerge.