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

Author

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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)

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
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    References listed on IDEAS

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    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. 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).
    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.
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