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Identifying barriers to large-scale integration of variable renewable electricity into the electricity market: A literature review of market design

Jing Hu, Robert Harmsen, Crijns-Graus, Wina, Ernst Worrell and Machteld van den Broek

Renewable and Sustainable Energy Reviews, 2018, vol. 81, issue P2, 2181-2195

Abstract: For reaching the 2°C climate target, the robust growth of electricity generation from variable renewable energy sources (VRE) in the power sector is expected to continue. Accommodation of the power system to the variable, uncertain and locational-dependent outputs of VRE causes integration costs. Integrating VRE into a well-functioning electricity market can minimize integration costs and drive investments in VRE and complementary flexible resources. However, the electricity market in the European Union (EU), as currently designed, seems incapable to deliver this end. This paper aims to provide a comprehensive literature review of barriers to the large-scale market integration of VRE in the EU electricity market design. Based on the set-up of the EU electricity market, a framework was developed to incorporate the most pertinent market integration barriers and resulting market inefficiencies.

Keywords: Market integration; Barrier; Integration costs; Electricity market; Variable renewable electricity (search for similar items in EconPapers)
Date: 2018
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