Revenue Adequacy Analysis in Financial Transmission Rights Market

One of the main problems facing this assignment is the one that arises from carrying out the auction with a present model of the Day Ahead Market for a future assignment and given that there are variables that cannot be foreseen (outages, deterioration, etc.) it is difficult to guarantee the constancy of models, leading to a financial problem known as Revenue Adequacy. In this document, it is described the Revenue Adequacy problematic in the electricity market and some aspects that were taken into consideration in the FTR market implementation.