We present a survey of US capacity market experts with the purpose of drawing lessons for the EU. Of the
respondents, 41% advised EU member states against implementing capacity markets, while the
remaining were neutral or provided suggestions for improving capacity markets. Cross-border effects are
currently not a concern but may become so in the future. Imports may dampen prices in a capacity
market, but neighbouring markets may also experience pressure to implement a capacity market. The
capacity markets in the USA were believed to have achieved their goals with respect to reliability, but in
an economically inefficient manner.
Utilities Policy 38 (2016) 11-17