Capacity credit of storage in long-term planning models and capacity markets

Capacity credits, i.e., metrics that describe the contribution of different technologies in meeting load during peak periods, are widely used context long-term energy-system optimization models to ensure a pre-defined level firm capacity. In same vain, such capacity credits may be markets reflect availability an asset periods load. For storage it seems there is discrepancy between credit correctly captures target, and values This illustrated case study, which shows differences planning model outcomes when interpretations used. Our results indicate defining according target overvalues technologies, causing overinvestments. On contrary, value capacity, triggers correct amount investments, but underestimates true reduction potential, overinvestments other providers. this regard, novel iterative approach introduced leverages both simultaneously remove any bias solution.