Power markets with Renewables: New perspectives for the European Target Model

Karsten Neuhoff, Sophia Wolter and Sebastian Schwenen
Authors registered in the RePEc Author Service: Sebastian Schwenen () and Karsten Neuhoff ()

The Energy Journal, 2016, vol. Volume 37, issue Bollino-Madlener Special Issue

Abstract: We discuss at the European example how power market design evolves with increasing shares of intermittent renewables. Short-term markets and system operation have to accommodate for the different needs of renewable and conventional generation assets and flexibility options. This can be achieved by pooling resources over larger geographic areas through common auction platforms, realizing the full flexibility of different assets based on multi-part bids while efficiently allocating scarce network resources. For investment and re-investment choices different technology groups like wind and solar versus fossil fuel based generation may warrant a different treatment - reflecting differing levels of publicly accessible information, requirements for grid infrastructure, types of strategic choices relevant for the sector and shares of capital cost in overall generation costs. We discuss opportunities for such a differentiated treatment while maintaining synergies in short-term system operation.

JEL-codes: F0 (search for similar items in EconPapers)
Date: 2016
References: Add references at CitEc
Citations: View citations in EconPapers (24)

Downloads: (external link)
http://www.iaee.org/en/publications/ejarticle.aspx?id=2728 (text/html)

Related works:
Journal Article: Power markets with Renewables: New perspectives for the European Target Model (2016)
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:aen:journl:ej37-si2-neuho

Ordering information: This journal article can be ordered from
http://www.iaee.org/en/publications/ejsearch.aspx

Access Statistics for this article

More articles in The Energy Journal from International Association for Energy Economics Contact information at EDIRC.
Bibliographic data for series maintained by David Williams ().