Capacity Markets in Times of Energy Transition: A Cross-Border Energy Analysis Integration using the Political Dimension of the Full Potential Energy Resources Assessment

The objective of this paper is to analyze the implementation of capacity instruments in partially opened power markets. In that sense, a study case is used in the recently created Brazilian capacity market, evaluating the degree of acceptability of its capacity instrument. The methodology to perform this evaluation is the Determination of the Complete Potential of Energy Resources (DPC-RE), using its political dimension. Besides that, a comparison with the capacity instrument used in PJM Interconnection is made, to exemplify the results between both capacity instruments. Capacity instruments is growing in importance in power systems, to meet reliability and supply adequacy, in times of energy transition and deployment of renewables.