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Melting-pots and salad bowls: the current debate on electricity market design for RES integration

Author

Listed:
  • Jean-Michel Glachant

    (Florence School of Regulation, Holder of the Loyola de Palacio Chair, European University Institute)

  • Arthur Henriot

    (Florence School of Regulation, European University Institute, Villa La Fonte - Via delle Fontanelle, 10 – 50014 San Domenico di Fiesole (FI) –Italy)

Abstract

This paper discusses a series of issues regarding the economic integration of intermittent renewables into European electricity markets. This debate has gained in importance following the large-scale deployment of wind farms and photovoltaic panels. As intermittent renewables constitute a significant share of the installed generation capacity, they cannot be kept isolated from the electricity markets. We argue that RES integration is first and foremost an issue of economic efficiency, and we review the main debates and frameworks that have emerged in the literature. we first consider to what extent intermittent resources should be treated the same way as dispatchable resources. we then analyse the different tools that have been proposed to ensure the required flexibility will be delivered: finer temporal granularity and new price boundaries, integration of a complex set of balancing markets, and introduction of tailor—made capacity remuneration mechanisms. Finally we introduce the topic of space redistribution, confronting crosscontinental markets integration to the emergence of a mosaic of local markets.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Jean-Michel Glachant & Arthur Henriot, 2013. "Melting-pots and salad bowls: the current debate on electricity market design for RES integration," Working Papers EPRG 1329, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    • Handle: RePEc:enp:wpaper:eprg1329
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Electricity market design; large-scale renewables; intermittency;
    All these keywords.

    JEL classification:

    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General

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