Variable renewable generation is increasing in penetration in modern power systems, leading to higher variability in the supply and price of electricity as well as lower average spot prices. This raises new challenges, particularly in ensuring sufficient capacity and flexibility from conventional technologies. Because the fixed costs and lifetimes of electricity generation investments are significant, designing markets and regulations that ensure the efficient integration of renewable

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... is a significant challenge. This panel presentation reviews the state of play with regard to these issues in the United States and Europe and considers new developments in both regions. Index Terms-wind energy, power markets, adequacy, capacity I.