Managing Market Operations in Low Carbon Energy Systems
The focus of this project is to assess the compatibility of low carbon energy systems, which feature a high share of variable renewable generation, with current market operations. It aims facilitate the integration of renewable generation technologies through the analysis of the role of flexibility and storage in it and how the operation of conventional technologies is safeguarded.
Considering that restrictions on the emission of greenhouse gases tighten and renewable systems are expected to be a main component of future electrical systems, this work seeks to answer these research questions:
- How compatible are the solutions to mitigate the effects that actions responsible for climate change with current market arrangements?
- The presence of wind and solar power lowers market prices to a point where the established operation of conventional generation units is undermined. As renewable generation is compensated through fixed tariffs, how does conventional generation recover its energy revenue? Can it survive if a part of the market is subsidized and the other isn’t?
- How do energy storage and demand side technologies fit in the current market arrangements and accommodate the integration of renewable generation?
- How viable is energy storage in future renewable energy systems?
- How can the operation of energy storage be secured in situations of very low or even zero market prices?
- What are the roles of transmission capacity and market interconnection in renewable energy systems?
- Is it possible to incorporate flexibility into the electricity market?
- What is the role of energy storage in achieving the required levels of flexibility for an efficient integration of variable renewable generation?
This project is part of Work Package 3 of the Storage project funded by the European Commission.