Solution section
Investment & Cost Recovery
How fixed costs, investment and resource adequacy are supported.
Investment & Cost Recovery
Investment incentives can come from:
- energy-market revenues;
- congestion rents;
- scarcity prices;
- long-term contracts;
- support schemes;
- capacity mechanisms.
There is no single universal zonal investment architecture.
The locational investment signal is coarser than nodal pricing because all participants inside a bidding zone face the same wholesale settlement price.