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Designing New Energy Markets to Promote Renewables

Author

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  • Di Foggia, Giacomo
  • Beccarello, Massimo

Abstract

The drive toward decarbonization has spurred the growth of renewable energy sources, reshaping energy production and consumption patterns. As the energy landscape evolves, so must the market design supporting it to steer the integration of renewable energy. Addressing the challenges of promoting distributed renewable energy is paramount for developing a cleaner energy system and meeting decarbonization targets. This study presents a modern market design that efficiently integrates renewable energy sources, long-term contracts, and flexibility technologies into a single evolved market framework. The approach described herein provides proper price signals for diverse assets and decouples renewable energy from fossil fuels, ensuring economic viability and efficient integration. Taking into consideration key barriers and drivers, the findings provide insights for perfecting energy markets, meeting decarbonization targets, and guiding policymaking to boost cleaner energy systems.

Suggested Citation

  • Di Foggia, Giacomo & Beccarello, Massimo, 2024. "Designing New Energy Markets to Promote Renewables," MPRA Paper 121783, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:121783
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    File URL: https://mpra.ub.uni-muenchen.de/121783/1/MPRA_paper_121783.pdf
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    More about this item

    Keywords

    market design; RES; Environmental economics; energy markets; energy price;
    All these keywords.

    JEL classification:

    • H40 - Public Economics - - Publicly Provided Goods - - - General
    • L88 - Industrial Organization - - Industry Studies: Services - - - Government Policy
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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