Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
8112268 | Renewable and Sustainable Energy Reviews | 2018 | 15 Pages |
Abstract
This paper concludes that an overhaul is needed for the current EU electricity market to address all barriers identified. Firstly, a discrete auction intraday market, a marginal pricing balancing market, a two-price imbalance settlement and a nodal pricing locational marginal pricing mechanism seem more promising in limiting integration costs. Secondly, to support business cases of VRE and complementary flexible resources in the electricity market, a level playing field should be established and the price cap should be lifted up to the value of lost load (VOLL). Meanwhile, to fit VRE's market participation, a higher time resolution of trading products and later gate closure time in different submarkets would be required. Lastly, feed-in support schemes currently widely used for VRE investments might be inconsistent with market integration, as they increase integration costs and lock VRE investments in a subsidy-dependent pathway. To avoid such lock-in, further investigation of alternative capacity-based support schemes is recommended.
Related Topics
Physical Sciences and Engineering
Energy
Renewable Energy, Sustainability and the Environment
Authors
Jing Hu, Robert Harmsen, Wina Crijns-Graus, Ernst Worrell, Machteld van den Broek,