IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v15y2022i3p838-d732298.html
   My bibliography  Save this article

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
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/15/3/838/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/15/3/838/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Larissa P. Steblyakova & Elena Vechkinzova & Zhibek Khussainova & Zhanibek Zhartay & Yelena Gordeyeva, 2022. "Green Energy: New Opportunities or Challenges to Energy Security for the Common Electricity Market of the Eurasian Economic Union Countries," Energies, MDPI, vol. 15(14), pages 1-26, July.
    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. Gitelman, Lazar & Kozhevnikov, Mikhail & Ditenberg, Maksim, 2024. "Electrification as a factor in replacing hydrocarbon fuel," Energy, Elsevier, vol. 307(C).
    4. 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.
    5. 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.
    6. 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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Smirnova, Elena & Kot, Sebastian & Kolpak, Eugeny & Shestak, Viktor, 2021. "Governmental support and renewable energy production: A cross-country review," Energy, Elsevier, vol. 230(C).
    2. Manuela Tvaronavičienė & Evgeny Lisin & Vladimir Kindra, 2020. "Power Market Formation for Clean Energy Production as the Prerequisite for the Country’s Energy Security," Energies, MDPI, vol. 13(18), pages 1-14, September.
    3. Wadim Strielkowski & Dalia Streimikiene & Alena Fomina & Elena Semenova, 2019. "Internet of Energy (IoE) and High-Renewables Electricity System Market Design," Energies, MDPI, vol. 12(24), pages 1-17, December.
    4. Evgeny Lisin & Wadim Strielkowski & Veronika Chernova & Alena Fomina, 2018. "Assessment of the Territorial Energy Security in the Context of Energy Systems Integration," Energies, MDPI, vol. 11(12), pages 1-14, November.
    5. 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.
    6. Darya Pyatkina & Tamara Shcherbina & Vadim Samusenkov & Irina Razinkina & Mariusz Sroka, 2021. "Modeling and Management of Power Supply Enterprises’ Cash Flows," Energies, MDPI, vol. 14(4), pages 1-17, February.
    7. Vyacheslav Volchik & Elena Maslyukova, 2019. "Trust and development of education and science," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 6(3), pages 1444-1455, March.
    8. Wadim Strielkowski & Irina Firsova & Inna Lukashenko & Jurgita Raudeliūnienė & Manuela Tvaronavičienė, 2021. "Effective Management of Energy Consumption during the COVID-19 Pandemic: The Role of ICT Solutions," Energies, MDPI, vol. 14(4), pages 1-17, February.
    9. Nomeda Dobrovolskienė & Anastasija Pozniak & Manuela Tvaronavičienė, 2021. "Assessment of the Sustainability of a Real Estate Project Using Multi-Criteria Decision Making," Sustainability, MDPI, vol. 13(8), pages 1-19, April.
    10. Marcin Kopiczko & Jaroslaw Jaworski, 2021. "Characteristics of the Parameters of Lithium Iron Phosphate Energy Storage in the Context of their Usefulness in the Management of Distribution Grid," European Research Studies Journal, European Research Studies Journal, vol. 0(3B), pages 817-826.
    11. Yingfeng Zhu, 2023. "Industry Stakeholders Perspectives on Assessing the Effect of Government Policy on Renewable Energy Investment in China," International Journal of Energy Economics and Policy, Econjournals, vol. 13(4), pages 563-573, July.
    12. Vladimir Kindra & Andrey Rogalev & Evgeny Lisin & Sergey Osipov & Olga Zlyvko, 2021. "Techno-Economic Analysis of the Oxy-Fuel Combustion Power Cycles with Near-Zero Emissions," Energies, MDPI, vol. 14(17), pages 1-22, August.
    13. Paweł Ziemba, 2022. "Energy Security Assessment Based on a New Dynamic Multi-Criteria Decision-Making Framework," Energies, MDPI, vol. 15(24), pages 1-18, December.
    14. Marcin Rabe & Dalia Streimikiene & Wojciech Drożdż & Yuriy Bilan & Rafal Kasperowicz, 2020. "Sustainable regional energy planning: The case of hydro," Sustainable Development, John Wiley & Sons, Ltd., vol. 28(6), pages 1652-1662, November.
    15. Alexander Melnik & Kirill Ermolaev, 2020. "Strategy Context of Decision Making for Improved Energy Efficiency in Industrial Energy Systems," Energies, MDPI, vol. 13(7), pages 1-28, March.
    16. Ilunga Kajila Rice & Hanhua Zhu & Cunquan Zhang & Arnauld Robert Tapa, 2023. "A Hybrid Photovoltaic/Diesel System for Off-Grid Applications in Lubumbashi, DR Congo: A HOMER Pro Modeling and Optimization Study," Sustainability, MDPI, vol. 15(10), pages 1-15, May.
    17. Tuyen Pham & Clara Bone & G. Jason Jolley, 2024. "Assessing the Economic Impacts of Sustainable Energy: An Analysis of Ohio’s Community Solar Program," Sustainability, MDPI, vol. 16(21), pages 1-17, October.
    18. Hou, Yan & Li, Xiaobo & Wang, Hui & Yunusova, Rimma, 2024. "Focusing on energy efficiency: The convergence of green financing, FinTech, financial inclusion, and natural resource rents for a greener Asia," Resources Policy, Elsevier, vol. 93(C).
    19. Maciej Chowaniak & Zofia Gródek-Szostak & Karolina Kotulewicz-Wisińska & Małgorzata Luc & Marcin Suder & Anna Szeląg-Sikora, 2021. "The RES in the Countries of the Commonwealth of Independent States: Potential and Production from 2015 to 2019," Energies, MDPI, vol. 14(7), pages 1-24, March.
    20. Evgeny Lisin & Galina Kurdiukova & Pavel Okley & Veronika Chernova, 2019. "Efficient Methods of Market Pricing in Power Industry within the Context of System Integration of Renewable Energy Sources," Energies, MDPI, vol. 12(17), pages 1-16, August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jeners:v:15:y:2022:i:3:p:838-:d:732298. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.