IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v17y2024i20p5051-d1496326.html
   My bibliography  Save this article

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

Author

Listed:
  • 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)

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.

Suggested Citation

  • Muhammad Sadam Hussain & Kangwook Cho & Soo-jin Park, 2024. "Resource Adequacy and Integration of Renewables in Light of US, EU, and Pakistan’s Evolving Power Sector," Energies, MDPI, vol. 17(20), pages 1-45, October.
    • Handle: RePEc:gam:jeners:v:17:y:2024:i:20:p:5051-:d:1496326
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/17/20/5051/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/17/20/5051/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Kathleen Spees & Samuel A. Newell & Johannes P. Pfeifenberger, 2013. "Capacity Markets - Lessons Learned from the First Decade," Economics of Energy & Environmental Policy, International Association for Energy Economics, vol. 0(Number 2).
    2. Weitemeyer, Stefan & Kleinhans, David & Vogt, Thomas & Agert, Carsten, 2015. "Integration of Renewable Energy Sources in future power systems: The role of storage," Renewable Energy, Elsevier, vol. 75(C), pages 14-20.
    3. Liebensteiner, Mario & Wrienz, Matthias, 2020. "Do Intermittent Renewables Threaten the Electricity Supply Security?," Energy Economics, Elsevier, vol. 87(C).
    4. Yongrong Xin & Muhammad Khyzer Bin Dost & Hamza Akram & Waqas Ahmad Watto, 2022. "Analyzing Pakistan’s Renewable Energy Potential: A Review of the Country’s Energy Policy, Its Challenges, and Recommendations," Sustainability, MDPI, vol. 14(23), pages 1-18, December.
    5. Allard, Stéphane & Debusschere, Vincent & Mima, Silvana & Quoc, Tuan Tran & Hadjsaid, Nouredine & Criqui, Patrick, 2020. "Considering distribution grids and local flexibilities in the prospective development of the European power system by 2050," Applied Energy, Elsevier, vol. 270(C).
    Full references (including those not matched with items on IDEAS)

    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. Simshauser, Paul, 2021. "Vertical integration, peaking plant commitments and the role of credit quality in energy-only markets," Energy Economics, Elsevier, vol. 104(C).
    2. Keppler, Jan Horst & Quemin, Simon & Saguan, Marcelo, 2022. "Why the sustainable provision of low-carbon electricity needs hybrid markets," Energy Policy, Elsevier, vol. 171(C).
    3. Growitsch, Christian & Just, Lisa & Pedell, Burkhard, 2014. "Risk Assessment of Investments in Energy-only and Capacity Markets," Die Unternehmung - Swiss Journal of Business Research and Practice, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 68(3), pages 181-188.
    4. Nayak-Luke, Richard & Bañares-Alcántara, René & Collier, Sam, 2021. "Quantifying network flexibility requirements in terms of energy storage," Renewable Energy, Elsevier, vol. 167(C), pages 869-882.
    5. Lukas Wienholt & Ulf Philipp Müller & Julian Bartels, 2018. "Optimal Sizing and Spatial Allocation of Storage Units in a High-Resolution Power System Model," Energies, MDPI, vol. 11(12), pages 1-17, December.
    6. Fernández-Guillamón, Ana & Gómez-Lázaro, Emilio & Muljadi, Eduard & Molina-García, Ángel, 2019. "Power systems with high renewable energy sources: A review of inertia and frequency control strategies over time," Renewable and Sustainable Energy Reviews, Elsevier, vol. 115(C).
    7. Meira, Erick & Cyrino Oliveira, Fernando Luiz & de Menezes, Lilian M., 2022. "Forecasting natural gas consumption using Bagging and modified regularization techniques," Energy Economics, Elsevier, vol. 106(C).
    8. Matteo Fermeglia & Paolo Bevilacqua & Claudia Cafaro & Paolo Ceci & Antonio Fardelli, 2020. "Legal Pathways to Coal Phase-Out in Italy in 2025," Energies, MDPI, vol. 13(21), pages 1-22, October.
    9. Gulin, Marko & Pavlović, Tomislav & Vašak, Mario, 2016. "Photovoltaic panel and array static models for power production prediction: Integration of manufacturers’ and on-line data," Renewable Energy, Elsevier, vol. 97(C), pages 399-413.
    10. Simshauser, P., 2020. "Merchant utilities and boundaries of the firm: vertical integration in energy-only markets," Cambridge Working Papers in Economics 2039, Faculty of Economics, University of Cambridge.
    11. Bajo-Buenestado, Raúl, 2017. "Welfare implications of capacity payments in a price-capped electricity sector: A case study of the Texas market (ERCOT)," Energy Economics, Elsevier, vol. 64(C), pages 272-285.
    12. Simshauser, P. & Gilmore, J., 2020. "Is the NEM broken? Policy discontinuity and the 2017-2020 investment megacycle," Cambridge Working Papers in Economics 2048, Faculty of Economics, University of Cambridge.
    13. Laslett, Dean & Carter, Craig & Creagh, Chris & Jennings, Philip, 2017. "A large-scale renewable electricity supply system by 2030: Solar, wind, energy efficiency, storage and inertia for the South West Interconnected System (SWIS) in Western Australia," Renewable Energy, Elsevier, vol. 113(C), pages 713-731.
    14. Mohamed A Mohamed & Ali M Eltamaly & Abdulrahman I Alolah, 2016. "PSO-Based Smart Grid Application for Sizing and Optimization of Hybrid Renewable Energy Systems," PLOS ONE, Public Library of Science, vol. 11(8), pages 1-22, August.
    15. Amro M Elshurafa & Abdel Rahman Muhsen, 2019. "The Upper Limit of Distributed Solar PV Capacity in Riyadh: A GIS-Assisted Study," Sustainability, MDPI, vol. 11(16), pages 1-20, August.
    16. Reveron Baecker, Beneharo & Candas, Soner, 2022. "Co-optimizing transmission and active distribution grids to assess demand-side flexibilities of a carbon-neutral German energy system," Renewable and Sustainable Energy Reviews, Elsevier, vol. 163(C).
    17. Levin, Todd & Botterud, Audun, 2015. "Electricity market design for generator revenue sufficiency with increased variable generation," Energy Policy, Elsevier, vol. 87(C), pages 392-406.
    18. Stenzel, Peter & Linssen, Jochen, 2016. "Concept and potential of pumped hydro storage in federal waterways," Applied Energy, Elsevier, vol. 162(C), pages 486-493.
    19. Child, Michael & Kemfert, Claudia & Bogdanov, Dmitrii & Breyer, Christian, 2019. "Flexible electricity generation, grid exchange and storage for the transition to a 100% renewable energy system in Europe," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 139, pages 80-101.
    20. Chattopadhyay, Kabitri & Kies, Alexander & Lorenz, Elke & von Bremen, Lüder & Heinemann, Detlev, 2017. "The impact of different PV module configurations on storage and additional balancing needs for a fully renewable European power system," Renewable Energy, Elsevier, vol. 113(C), pages 176-189.

    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:17:y:2024:i:20:p:5051-:d:1496326. 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.