Imperial College London
Portrait Picture

ProfessorRichardGreen

Business School

Head of the Department of Economics and Public Policy
 
 
 
//

Contact

 

+44 (0)20 7594 2611r.green Website CV

 
 
//

Location

 

415City and Guilds BuildingSouth Kensington Campus

//

Summary

 

Publications

Citation

BibTex format

@article{Green:2016:10.5547/01956574.37.SI2.agia,
author = {Green, RJ and Pudjianto, D and Staffell, I and Strbac, G},
doi = {10.5547/01956574.37.SI2.agia},
journal = {Energy Journal},
pages = {5--22},
title = {Market Design for Long-Distance Trade in Renewable Electricity},
url = {http://dx.doi.org/10.5547/01956574.37.SI2.agia},
volume = {37},
year = {2016}
}
Download

RIS format (EndNote, RefMan)

TY  - JOUR
AB  - While the 2009 EU Renewables Directive allows countries to purchase some of their obligation fromanother member state, no country has yet done so, preferring to invest locally even where load factors arevery low. If countries specialised in renewables most suited to their own endowments and expandedinternational trade, we estimate that system costs in 2030 could be reduced by 5%, or €15 billion a year,after allowing for the costs of extra transmission capacity, peaking generation and balancing operationsneeded to maintain electrical feasibility.Significant barriers must be overcome to unlock these savings. Countries that produce more renewablepower should be compensated for the extra cost through tradable certificates, while those that buy fromabroad will want to know that the power can be imported when needed. Financial Transmission Rightscould offer companies investing abroad confidence that the power can be delivered to their consumers.They would hedge short-term fluctuations in prices and operate much more flexibly than the existingsystem of physical point-to-point rights on interconnectors. Using FTRs to generate revenue fortransmission expansion could produce perverse incentives to under-invest and raise their prices, sorevenues from FTRs should instead be offset against payments under the existing ENTSO-Ecompensation scheme for transit flows. FTRs could also facilitate cross-border participation in capacitymarkets, which are likely to be needed to reduce risks for the extra peaking plants required.
AU  - Green,RJ
AU  - Pudjianto,D
AU  - Staffell,I
AU  - Strbac,G
DO  - 10.5547/01956574.37.SI2.agia
EP  - 22
PY  - 2016///
SN  - 0195-6574
SP  - 5
TI  - Market Design for Long-Distance Trade in Renewable Electricity
T2  - Energy Journal
UR  - http://dx.doi.org/10.5547/01956574.37.SI2.agia
UR  - https://www.iaee.org/en/publications/init2.aspx?id=0
UR  - http://hdl.handle.net/10044/1/29615
VL  - 37
ER  -
Download