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Integrating larger shares of variable renewables into the electricity system: competitive or centrally planned? |
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| รหัสดีโอไอ | |
| Title | Integrating larger shares of variable renewables into the electricity system: competitive or centrally planned? |
| Creator | Reinhard Haas |
| Publisher | Joint Graduate School of Energy and Environment |
| Publication Year | 2557 |
| Keyword | electricity system, variable renewables, market, flexibility |
| Abstract | In recent years electricity generation from variable renewable energy sources (VRES) like wind and photovoltaics (PV) has skyrocketed. In this paper it is analyzed which additional conditions from the side of organizing electricity markets are necessary for integrating in future even larger shares of VRES into the grid. Another objective is to discuss the relevance and the effects of capacity payments and the alternatives. The major conclusion of our analysis is that capacity payments are a step back to a planned economy with all in all much higher costs for society. The only "negative" aspect of a market without capacity component will be that at least in the short run temporarily higher costs than the short-term marginal costs will occur. However, after some time the market will learn to benefit from these higher costs and also from the very low costs at times when VRES are abundant. A reasonable price spread will come about that provides incentives for different market participants. Moreover, in addition to pure power generation capacities other elements like smart grids, technical demand-side management and short-term storage options will even out a large part of the residual load profile. Yet, the most important so far neglected issue for a real electricity market is the development of the demand-side. |
| ISBN | 978-616-92228-1-1 |
