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Capacity Markets

A market for trading capacity credits.

Definition by FERC

Source: 1

A market for the trading of capacity credits (the ability to produce electricity in the market area during a defined period) usually between parties obligated to deliver electricity to customers and power plant owners.

Last modified: 2025-06-20

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  1. FERC (2020). FERC Glossary - Market Assessments. https://www.ferc.gov/industries-data/market-assessments/overview/glossary ↩