Marginal curtailment of wind and solar PV: Transmission constraints, pricing and access regimes for efficient investment

David M. Newbery and Darryl R. Biggar

Energy Policy, 2024, vol. 191, issue C

Abstract: As Variable Renewable Energy (VRE) penetration increases in poorly networked areas with suitable VRE resources, transmission constraints will increasingly force VRE curtailment. Under most European market access and pricing arrangements, location and operation decisions are based on average curtailment rates. As the marginal contribution of the last MW of VRE is 3+ times average curtailment, there is a risk of inefficient location and operation. This article compares different pricing and access regimes (including nodal pricing) to compare their impact on the incentives for VRE merchant or market driven entry.

Keywords: Transmission constraints; Access regimes; Variable renewable electricity; Marginal curtailment; Nodal pricing (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S030142152400226X
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:enepol:v:191:y:2024:i:c:s030142152400226x

DOI: 10.1016/j.enpol.2024.114206

Access Statistics for this article

Energy Policy is currently edited by N. France

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