Electricity Market Design with Increasing Renewable Generation: Lessons From Alberta

David Brown, Derek E. H. Olmstead () and Blake Shaffer ()
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Derek E. H. Olmstead: University of Calgary
Blake Shaffer: University of Calgary

No 2024-3, Working Papers from University of Alberta, Department of Economics

Abstract: The electricity sector is going through a period of rapid transition with increasing decarbonization through the growth of renewable energy. In this paper, we consider the case of Alberta which has observed considerable growth in wind and solar generation capacity. We summarize the attributes of Alberta’s energy-only market design and how it interacts with increasing renewable output. We highlight emerging challenges that need to be addressed through careful market redesign and provide a summary of key market design changes that can help more cost-effectively and reliably integrate the growing renewable resources. We discuss ongoing policy developments related to Alberta’s market design. The experiences in Alberta can serve to inform market design in other jurisdictions as regulators work to enact policies to facilitate a higher renewable energy future.

Keywords: Electricity Markets; Regulatory Policy; Renewables; Reliability (search for similar items in EconPapers)
JEL-codes: L51 L94 Q28 Q48 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2024-08-18
New Economics Papers: this item is included in nep-des, nep-ene, nep-ind and nep-reg
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Persistent link: https://EconPapers.repec.org/RePEc:ris:albaec:2024_003

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