Trade · 6 pages · 12 min
How a capacity payment differs from an energy payment
Energy pays for megawatt-hours produced, while capacity pays for plant that stands ready.
When the purchase is complete, return to the original window. It will refresh.
From the opening
An energy payment compensates a generator for megawatt-hours actually delivered in an interval. A capacity payment compensates the same plant, or a demand reduction, for being available to deliver when the system is tight, whether or not it runs that hour. The opening covers energy pays metered output, capacity pays for readiness, and a peaker may rarely run.
The rest of the brief — the later sections and the reading notes — opens after Stripe confirms payment.
Inside
- Energy pays metered output
- Capacity pays for readiness
- A peaker may rarely run
- Energy-only skips the split
- Where the idea stops applying
- A distinction worth keeping
Sources
- Capacity market obligation
- Energy-only electricity market