Market design for a high-renewables European electricity system
By David Newbery, Michael Pollitt, Robert A. Ritz, W. Strielkowski. Renewable & Sustainable Energy Reviews, 2018
302 citations recorded by the source corpus.
This paper presents a set of policy recommendations for the market design of a future European electricity system characterized by a dominant share of intermittent renewable energy supply (RES), in line with the stated targets of European governments. We discuss the market failures that need to be addressed to accommodate RES in liberalized electricity markets, review the evolution of the EU's RES policy mechanisms, and summarize the key market impacts of RES to date. We then set out economic principles for market design and use these to develop our policy recommendations. Our analysis covers the value of interconnection and market integration, electricity storage, the design of RES support mechanisms, distributed generation and network tariffs, the pricing of electricity and flexibility as well as long-term contracting and risk management.
Subfields: Electrical and Electronic Engineering
View Paper: https://www.semanticscholar.org/paper/b815236d2199e614c4d46cc1e654e44167b16f7b
How researchers see this paper
The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.
In Electrical and Electronic Engineering
- Michael Grubb
- W. Fichtner
- Andreas Bublitz
- Dogan Keles
- C. Fraunholz
- Florian Zimmermann
- David Newbery
- P. Joskow
Citations in the corpus
- Peanut Shell for Energy: Properties and Its Potential to Respect the Environment (2018, background): “This mechanism is one of the cornerstones of the European energy system, in which a price is set for carbon dioxide and which allows CO2 emission rights to be traded in order to promote their efficient reduction [14,15].”
- A survey on electricity market design: Insights from theory and real-world implementations of capacity remuneration mechanisms (2019, background): “Combined with the priority dispatch of RES implemented in many European countries (Hu et al., 2017; Newbery et al., 2017), this effect can even lead to negative prices (Nicolosi, 2010).”
- UK Electricity Market Reform and the Energy Transition:Emerging Lessons (2018, background): “Finally, the offshore wind farms were generating substantially more output than expected, increasing their payouts, and underlying the undesirable way of paying subsidies per MWh rather than on capacity (see §7.1 and Grubb, 2015; Newbery et al., 2017).”