Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/200749
Authors: 
Neuhoff, Karsten
Wolter, Sophia
Schwenen, Sebastian
Year of Publication: 
2016
Citation: 
[Journal:] The Energy Journal [Volume:] 37 [Pages:] 3-38 [ISSN:] 0195-6574
Abstract: 
We discuss at the European example how power market design evolves with increasing shares of intermittent renewables. Short-term markets and system operation have to accommodate for the different needs of renewable and conventional generation assets and flexibility options. This can be achieved by pooling resources over larger geographic areas through common auction platforms, realizing the full flexibility of different assets based on multi-part bids while efficiently allocating scarce network resources. For investment and re-investment choices different technology groups like wind and solar versus fossil fuel based generation may warrant a different treatment - reflecting differing levels of publicly accessible information, requirements for grid infrastructure, types of strategic choices relevant for the sector and shares of capital cost in overall generation costs. We discuss opportunities for such a differentiated treatment while maintaining synergies in short-term system operation.
Subjects: 
Power market design
Regulation
Investment framework
Intermittent renewables
JEL: 
Q41
Q42
D44
Persistent Identifier of the first edition: 
Creative Commons License: 
http://creativecommons.org/licenses/by/4.0/
Document Type: 
Article
Document Version: 
Published Version

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