Resource Adequacy and Integration of Renewables in Light of US, EU, and Pakistan’s Evolving Power Sector

Muhammad Sadam Hussain, Kangwook Cho () and Soo-jin Park
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Muhammad Sadam Hussain: Department of Energy Policy and Engineering, KEPCO International Nuclear Graduate School, Ulsan 45014, Republic of Korea
Kangwook Cho: Department of Energy Policy and Engineering, KEPCO International Nuclear Graduate School, Ulsan 45014, Republic of Korea
Soo-jin Park: Department of Energy Policy and Engineering, KEPCO International Nuclear Graduate School, Ulsan 45014, Republic of Korea

Energies, 2024, vol. 17, issue 20, 1-45

Abstract: This study investigates resource adequacy and renewable energy integration in the United States, European Union, and Pakistan amid global energy market liberalization and greenhouse gas reduction efforts. It explores how these regions are adapting to the surge in renewable sources like wind and solar, which, despite their financial and environmental benefits, challenge resource adequacy and the economic viability of traditional energy sources. In the US and EU, significant improvements have been introduced in wholesale electricity markets and capacity accreditation mechanisms, which enhanced the large-scale deployment of renewables. This shift has prompted a reevaluation of resource adequacy, leading to the increased deployment of battery storage and demand response. Presently, gas-based generation is largely upholding resource adequacy; however, future trends indicate a move towards greater consumer participation, energy efficiency, and utility-scale storage, with a decline in fossil fuel use. Pakistan aims to adopt a liberalized market structure by balancing competitive markets with legacy contracts. Public pressure is driving a shift from costly fossil-based generation to renewables. Similarly, a trend in the rise of behind-the-meter solar generation can be witnessed. In the future, Pakistan may also experience resource adequacy challenges. It will likely need to implement battery storage, demand response, and modern capacity accreditation tools, by drawing lessons from developed markets.

Keywords: resource adequacy; capacity accreditation; competitive trading bilateral contract market (CTBCM); renewable energy; demand response; battery storage; capacity remuneration (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: 2024
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