Analyzing Electricity Markets with Increasing Penetration of Large-Scale Renewable Power Generation

Chris Johnathon, Ashish Prakash Agalgaonkar, Joel Kennedy and Chayne Planiden
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Chris Johnathon: Faculty of Engineering and Information Sciences, University of Wollongong, Wollongong 2500, Australia
Ashish Prakash Agalgaonkar: Faculty of Engineering and Information Sciences, University of Wollongong, Wollongong 2500, Australia
Joel Kennedy: Faculty of Health, Engineering and Sciences, University of Southern Queensland, Springfield 4300, Australia
Chayne Planiden: Faculty of Engineering and Information Sciences, University of Wollongong, Wollongong 2500, Australia

Energies, 2021, vol. 14, issue 22, 1-15

Abstract: Global electricity markets are undergoing a rapid transformation in their energy mix to meet commitments towards sustainable electric grids. This change in energy mix engenders significant challenges, specifically concerning the management of non-dispatchable energy resources. System and market operators are required to meet power system security and reliability requirements whilst providing electricity at competitive prices. An overview of electricity markets is provided in this paper with a critical appraisal of each market’s ability to manage the large-scale energy mix transition. This paper provides a commentary on the distinct features of electricity market models implemented around the world and highlights the barriers within these market models that are hindering the energy mix transition. Various researchers and policymakers are proposing solutions and market reforms for the smooth transitioning of the energy mix. This paper presents a systematic review of the proposed solutions in the literature and critiques the effectiveness and ease of implementation of the reviewed solutions. Research gaps and future research directions are indicated to promote further exploration towards the effective integration of large-scale renewable energy technologies.

Keywords: electricity markets; variable renewable energy; renewable energy technologies; interconnected power systems (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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