Revealing Renewable Energy Perspectives via the Analysis of the Wholesale Electricity Market

Galina Chebotareva, Manuela Tvaronavičienė, Larisa Gorina, Wadim Strielkowski, Julia Shiryaeva and Yelena Petrenko
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Manuela Tvaronavičienė: Department of Business Technologies and Entrepreneurship, Vilnius Gediminas Technical University, Sauletekio 11, 10223 Vilnius, Lithuania
Larisa Gorina: Institute of Engineering and Environmental Security, Togliatti State University, 445020 Togliatti, Russia
Julia Shiryaeva: Academic Department of Energy and Industrial Enterprises Management Systems, Ural Federal University, 620002 Yekaterinburg, Russia
Yelena Petrenko: Regionalne Lean Technology Center SIMKON, Zhambyl Str. 103A, Office 101, Karaganda 100000, Kazakhstan

Energies, 2022, vol. 15, issue 3, 1-19

Abstract: The wholesale electricity and capacity market constitute the backbone of the Russian power industry. It is in this market that large suppliers and buyers operate, and its entire turnover is consequently transmitted to the retail market. Our paper presents a theoretical overview of the main tools for forming the cost of electricity and capacity in the wholesale market in Russia (depending on the regional affiliation), the type of end users, and the degree of state participation. We consider the specifics of the formation of the cost of electricity and capacity in the price and non-price wholesale markets of Russia, which differ in territorial, climatic, and economic characteristics, as well as the established structure of generation. In the empirical part of the paper, we carry out a structural analysis of the volumes of trade in electricity and capacity in the price and non-price zones of the market. Furthermore, we explain the reasons for the current dynamics of prices in the wholesale market. Using the obtained results, we calculate the maximum annual effect of the solar power plant operation in various zones of the Russian wholesale market, as well as in the retail market. In addition, we estimate the economic incentive for the transition of the functioning of power facilities from the wholesale to the retail market. Our results can be of considerable practical importance and might be used for improving the strategy for the development of the electric power industry at the regional level both in Russia and in the other countries.

Keywords: wholesale energy market; retail energy market; electricity; capacity; price zones; renewable energy; Russia; solar energy (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: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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