A generation directrix-based regulation energy market mechanism for fairer competition in power systems with high renewable energy penetration

Jiu Gu, Shichao Zhou, Lingling Wang, Chuanwen Jiang and Zuyi Li

Energy, 2025, vol. 315, issue C

Abstract: Building a power system with a high penetration of renewable energy is the prevailing developmental trajectory of most countries. However, the current electricity spot market mechanism is predominantly tailored for conventional generators (CGs, e.g., thermal units), which ignores the notable differences between renewable energy sources (RESs) and CGs in terms of generation cost and adjustment capability. Consequently, RESs benefit from priority in market-clearing without assuming regulation responsibility during the bidding process alongside CGs, thereby impacting the fairness of the spot market. In this paper, we propose the concept of RES generation directrix (RGD) to quantify the regulation responsibility that RESs need to bear when participating in the spot market. Subsequently, a regulation energy market is introduced in the spot market to reshape the power generation curve of RESs. Finally, the validity of the proposed market mechanism is verified across different test systems. Numerous experiments indicate the proposed RGD-based market mechanism provides a more level playing field for RESs and CGs, helps form an independent offer price for RESs, thereby relieving the “missing money” problem and prolonging the effectiveness and sustainability of electricity spot markets.

Keywords: High renewable energy penetration; Electricity spot market; Generation directrix; Regulation responsibility; Regulation energy (search for similar items in EconPapers)
Date: 2025
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0360544225000520
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:315:y:2025:i:c:s0360544225000520

DOI: 10.1016/j.energy.2025.134410

Access Statistics for this article

Energy is currently edited by Henrik Lund and Mark J. Kaiser

More articles in Energy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().