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The Capacity Value of Wind: Foundations, Review and Applications in Chile

This paper reviews capacity value in restructured electricity markets and presents some drawbacks in formerly adopted schemes. By revisiting the main economic foundations of Peak Load Pricing, the matter of intermittent resources as wind is discussed. Chilean resource adequacy and capacity payment allocation mechanism is discussed after presenting wind energy outcome in the main national interconnected system. Finally, some desirable updates to capacity allocation methodology are suggested.