3. Generation capacity mechanisms. There is concern that with a large penetration of intermittent generation, and the pressure to reduce CO2 emissions, the future optimal mix of technologies will be very different from what is now. In particular there may be concern about getting the right amount of investment, especially when a large fraction of the installed capacity is intermittent. Capacity mechanisms could be of help in this respect. Make a critical evaluation of the regulatory instruments that have been adopted and/or implemented in the US (such as capacity payments or capacity markets) and elsewhere to promote adequacy in the investment of generation capacity. Describe and evaluate in detail the Forward Capacity Market in New England (or any other advanced scheme). The potential role of demand response. Same for plug-in hybrid vehicles (PHEVs). Is there a need for specific regulation of demand response and PHEVs? The treatment of interconnectors. Review of and comparison with other meaningful international experiences. Make a detailed and justified recommendation for the system of your interest. Think of how to overcome any problems in the implementation of the method that you propose if the level of horizontal concentration in generation in your power system is high