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

Author

Listed:
  • Galina Chebotareva

    (Academic Department of Energy and Industrial Enterprises Management Systems, Ural Federal University, 620002 Yekaterinburg, Russia)

  • Manuela Tvaronavičienė

    (Department of Business Technologies and Entrepreneurship, Vilnius Gediminas Technical University, Sauletekio 11, 10223 Vilnius, Lithuania
    Institute of Humanities and Social Sciences, Daugavpils University, LV-5401 Daugavpils, Latvia)

  • Larisa Gorina

    (Institute of Engineering and Environmental Security, Togliatti State University, 445020 Togliatti, Russia)

  • Wadim Strielkowski

    (Department of Agricultural and Resource Economics, University of California Berkeley, 303 Giannini Hall, Berkeley, CA 94720-3310, USA
    Department of Trade and Finance, Faculty of Economics and Management, Czech University of Life Sciences Prague, Kamýcká 129, 165 00 Prague, Czech Republic)

  • 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)

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.

Suggested Citation

  • Galina Chebotareva & Manuela Tvaronavičienė & Larisa Gorina & Wadim Strielkowski & Julia Shiryaeva & Yelena Petrenko, 2022. "Revealing Renewable Energy Perspectives via the Analysis of the Wholesale Electricity Market," Energies, MDPI, vol. 15(3), pages 1-19, January.
    • Handle: RePEc:gam:jeners:v:15:y:2022:i:3:p:838-:d:732298
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    References listed on IDEAS

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    1. Mohammad Chehabeddine & Manuela Tvaronavičienė, 2020. "Securing regional development," Post-Print hal-02569328, HAL.
    2. Wadim Strielkowski & Anna Sherstobitova & Patrik Rovny & Tatiana Evteeva, 2021. "Increasing Energy Efficiency and Modernization of Energy Systems in Russia: A Review," Energies, MDPI, vol. 14(11), pages 1-19, May.
    3. Mohammad R. Chehabeddine & Mohammad R. Chehabeddine & Manuela TvaronaviÄ ienÄ—, 2020. "Securing regional development," Insights into Regional Development, VsI Entrepreneurship and Sustainability Center, vol. 2(1), pages 430-442, March.
    4. Evgeny Lisin & Andrey Rogalev & Wadim Strielkowski & Ivan Komarov, 2015. "Sustainable Modernization of the Russian Power Utilities Industry," Sustainability, MDPI, vol. 7(9), pages 1-23, August.
    5. Eva Hanuláková & Ferdinand Daňo & Marek Kukura, 2021. "Transition of business companies to circular economy in Slovakia," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 9(1), pages 204-220, September.
    6. Mikhail Nikolaevich Dudin & Mikhail Nikolaevich Dudin & Evgenia Evgenevna Frolova & Evgenia Evgenevna Frolova & Olga Vadimirovna Protopopova & Oktay Mamedov & Stanislav Valerievich Odintsov, 2019. "Study of innovative technologies in the energy industry: nontraditional and renewable energy sources," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 6(4), pages 1704-1713, June.
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    Cited by:

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    2. Galina Chebotareva & Inna Čábelková & Wadim Strielkowski & Luboš Smutka & Anna Zielińska-Chmielewska & Stanislaw Bielski, 2023. "The Role of State in Managing the Wind Energy Projects: Risk Assessment and Justification of the Economic Efficiency," Energies, MDPI, vol. 16(12), pages 1-26, June.
    3. Sergey Zhironkin & Fares Abu-Abed & Elena Dotsenko, 2023. "The Development of Renewable Energy in Mineral Resource Clusters—The Case of the Siberian Federal District," Energies, MDPI, vol. 16(9), pages 1-28, April.
    4. Gordon Rausser & Galina Chebotareva & Wadim Strielkowski & Lubos Smutka, 2023. "Would Russian solar energy projects be feasible independent of state subsidies?," Papers 2312.07240, arXiv.org.
    5. Armenia Androniceanu & Oana Matilda Sabie, 2022. "Overview of Green Energy as a Real Strategic Option for Sustainable Development," Energies, MDPI, vol. 15(22), pages 1-35, November.

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