Addressing Market Issues in Electrical Power Systems with Large Shares of Variable Renewable Energy

Magnus Korpas; Hannele Holttinen; Niina Helisto; Robin Girard; Matti Koivisto; Bethany Frew; Jan Dobschinski; J. Charles Smith; Til Kristian Vrana; Damian Flynn; Antje Orths; Lennart Soder

doi:10.1109/EEM54602.2022.9921152

Addressing Market Issues in Electrical Power Systems with Large Shares of Variable Renewable Energy

Magnus Korpas
, Hannele Holttinen
, Niina Helisto
, Robin Girard
, Matti Koivisto
, Bethany Frew
, Jan Dobschinski
, J. Charles Smith
, Til Kristian Vrana
, Damian Flynn
, Antje Orths
, Lennart Soder

Norwegian University of Science and Technology (NTNU)
Recognis Oy
Technical University of Denmark (DTU)
National Renewable Energy Laboratory (NREL)
Fraunhofer Institute for Energy Economics and Energy System Technology (IEE)
SINTEF AS
University College Dublin
KTH Royal Institute of Technology
Mines ParisTech
Energy Systems Integration Group (ESIG)
Energinet

Research output: Chapter in Book/Report/Conference proceeding › Conference article in proceedings › Scientific › peer-review

1 Citation (Scopus)

Abstract

This paper reports recent findings from IEA Wind TCP Task 25, which compiles international experiences and research related to large-scale integration of wind and other renewable energy. In the paper, we address the main challenges for market integration of variable renewable energy, relating to price formation, cost recovery, balancing and other grid services. The paper gives an overview of recent scenario studies on electricity price impacts of (1) various generation, energy storage and demand types in different markets, and (2) different market designs and energy/climate policies. Studying markets with very high shares of variable renewable energy requires an improved set of analysis tools for forecasting market outcomes, estimating flexibility needs and sources, and assessing resource adequacy. Key market features need to be investigated within these improved analytical capabilities for systems transitioning to high shares of variable renewable energy, storage and flexible demand. System services that can be supported by markets will likely need to be revisited. Finally, this paper identifies open questions and suggested future market design work for supporting systems with very high shares of variable renewable energy, which are to be addressed in follow-up work of Task 25 collaborative research.

Original language	English
Title of host publication	18th International Conference on the European Energy Market, EEM 2022
Publisher	IEEE Institute of Electrical and Electronic Engineers
Number of pages	8
ISBN (Electronic)	978-1-66540-896-7
DOIs	https://doi.org/10.1109/EEM54602.2022.9921152
Publication status	Published - 2022
MoE publication type	A4 Article in a conference publication
Event	18th International Conference on the European Energy Market, EEM 2022 - Ljubljana, Slovenia Duration: 13 Sept 2022 → 15 Sept 2022

Conference

Conference	18th International Conference on the European Energy Market, EEM 2022
Country/Territory	Slovenia
City	Ljubljana
Period	13/09/22 → 15/09/22

Funding

This paper is part of R&D collaboration in the International Energy Agency Technology Collaboration Programme for Wind Energy (IEA TCP Wind) Task 25 “Design and operation of energy systems with large amount of variable generation”. This work was authored in part by the National Renewable Energy Laboratory, operated by Alliance for Sustainable Energy, LLC, for the U.S. Department of Energy (DOE) under Contract No. DE-AC36-08GO28308. Funding provided by U.S. Department of Energy Office of Energy Efficiency and Renewable Energy Wind Energy Technologies Office. The views expressed in the article do not necessarily represent the views of the DOE or the U.S. Government. The U.S. Government retains and the publisher, by accepting the article for publication, acknowledges that the U.S. Government retains a nonexclusive, paid-up, irrevocable, worldwide license to publish or reproduce the published form of this work, or allow others to do so, for U.S. Government purposes.

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 7 Affordable and Clean Energy
SDG 13 Climate Action

Keywords

cost recovery
electricity prices
market design
Variable renewable energy

Access to Document

10.1109/EEM54602.2022.9921152

Cite this

Korpas, M., Holttinen, H., Helisto, N., Girard, R., Koivisto, M., Frew, B., Dobschinski, J., Smith, J. C., Vrana, T. K., Flynn, D., Orths, A., & Soder, L. (2022). Addressing Market Issues in Electrical Power Systems with Large Shares of Variable Renewable Energy. In 18th International Conference on the European Energy Market, EEM 2022 IEEE Institute of Electrical and Electronic Engineers. https://doi.org/10.1109/EEM54602.2022.9921152

@inproceedings{f1937e9d393143fd8deafbed96f38244,

title = "Addressing Market Issues in Electrical Power Systems with Large Shares of Variable Renewable Energy",

abstract = "This paper reports recent findings from IEA Wind TCP Task 25, which compiles international experiences and research related to large-scale integration of wind and other renewable energy. In the paper, we address the main challenges for market integration of variable renewable energy, relating to price formation, cost recovery, balancing and other grid services. The paper gives an overview of recent scenario studies on electricity price impacts of (1) various generation, energy storage and demand types in different markets, and (2) different market designs and energy/climate policies. Studying markets with very high shares of variable renewable energy requires an improved set of analysis tools for forecasting market outcomes, estimating flexibility needs and sources, and assessing resource adequacy. Key market features need to be investigated within these improved analytical capabilities for systems transitioning to high shares of variable renewable energy, storage and flexible demand. System services that can be supported by markets will likely need to be revisited. Finally, this paper identifies open questions and suggested future market design work for supporting systems with very high shares of variable renewable energy, which are to be addressed in follow-up work of Task 25 collaborative research.",

keywords = "cost recovery, electricity prices, market design, Variable renewable energy",

author = "Magnus Korpas and Hannele Holttinen and Niina Helisto and Robin Girard and Matti Koivisto and Bethany Frew and Jan Dobschinski and Smith, \{J. Charles\} and Vrana, \{Til Kristian\} and Damian Flynn and Antje Orths and Lennart Soder",

note = "Funding Information: This paper is part of R\&D collaboration in the International Energy Agency Technology Collaboration Programme for Wind Energy (IEA TCP Wind) Task 25 “Design and operation of energy systems with large amount of variable generation”. This work was authored in part by the National Renewable Energy Laboratory, operated by Alliance for Sustainable Energy, LLC, for the U.S. Department of Energy (DOE) under Contract No. DE-AC36-08GO28308. Funding provided by U.S. Department of Energy Office of Energy Efficiency and Renewable Energy Wind Energy Technologies Office. The views expressed in the article do not necessarily represent the views of the DOE or the U.S. Government. The U.S. Government retains and the publisher, by accepting the article for publication, acknowledges that the U.S. Government retains a nonexclusive, paid-up, irrevocable, worldwide license to publish or reproduce the published form of this work, or allow others to do so, for U.S. Government purposes. Publisher Copyright: {\textcopyright} 2022 IEEE.; 18th International Conference on the European Energy Market, EEM 2022 ; Conference date: 13-09-2022 Through 15-09-2022",

year = "2022",

doi = "10.1109/EEM54602.2022.9921152",

language = "English",

booktitle = "18th International Conference on the European Energy Market, EEM 2022",

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Korpas, M, Holttinen, H, Helisto, N, Girard, R, Koivisto, M, Frew, B, Dobschinski, J, Smith, JC, Vrana, TK, Flynn, D, Orths, A & Soder, L 2022, Addressing Market Issues in Electrical Power Systems with Large Shares of Variable Renewable Energy. in 18th International Conference on the European Energy Market, EEM 2022. IEEE Institute of Electrical and Electronic Engineers, 18th International Conference on the European Energy Market, EEM 2022, Ljubljana, Slovenia, 13/09/22. https://doi.org/10.1109/EEM54602.2022.9921152

Addressing Market Issues in Electrical Power Systems with Large Shares of Variable Renewable Energy. / Korpas, Magnus; Holttinen, Hannele; Helisto, Niina et al.
18th International Conference on the European Energy Market, EEM 2022. IEEE Institute of Electrical and Electronic Engineers, 2022.

Research output: Chapter in Book/Report/Conference proceeding › Conference article in proceedings › Scientific › peer-review

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AU - Korpas, Magnus

AU - Holttinen, Hannele

AU - Helisto, Niina

AU - Girard, Robin

AU - Koivisto, Matti

AU - Frew, Bethany

AU - Dobschinski, Jan

AU - Smith, J. Charles

AU - Vrana, Til Kristian

AU - Flynn, Damian

AU - Orths, Antje

AU - Soder, Lennart

N1 - Funding Information: This paper is part of R&D collaboration in the International Energy Agency Technology Collaboration Programme for Wind Energy (IEA TCP Wind) Task 25 “Design and operation of energy systems with large amount of variable generation”. This work was authored in part by the National Renewable Energy Laboratory, operated by Alliance for Sustainable Energy, LLC, for the U.S. Department of Energy (DOE) under Contract No. DE-AC36-08GO28308. Funding provided by U.S. Department of Energy Office of Energy Efficiency and Renewable Energy Wind Energy Technologies Office. The views expressed in the article do not necessarily represent the views of the DOE or the U.S. Government. The U.S. Government retains and the publisher, by accepting the article for publication, acknowledges that the U.S. Government retains a nonexclusive, paid-up, irrevocable, worldwide license to publish or reproduce the published form of this work, or allow others to do so, for U.S. Government purposes. Publisher Copyright: © 2022 IEEE.

PY - 2022

Y1 - 2022

N2 - This paper reports recent findings from IEA Wind TCP Task 25, which compiles international experiences and research related to large-scale integration of wind and other renewable energy. In the paper, we address the main challenges for market integration of variable renewable energy, relating to price formation, cost recovery, balancing and other grid services. The paper gives an overview of recent scenario studies on electricity price impacts of (1) various generation, energy storage and demand types in different markets, and (2) different market designs and energy/climate policies. Studying markets with very high shares of variable renewable energy requires an improved set of analysis tools for forecasting market outcomes, estimating flexibility needs and sources, and assessing resource adequacy. Key market features need to be investigated within these improved analytical capabilities for systems transitioning to high shares of variable renewable energy, storage and flexible demand. System services that can be supported by markets will likely need to be revisited. Finally, this paper identifies open questions and suggested future market design work for supporting systems with very high shares of variable renewable energy, which are to be addressed in follow-up work of Task 25 collaborative research.

AB - This paper reports recent findings from IEA Wind TCP Task 25, which compiles international experiences and research related to large-scale integration of wind and other renewable energy. In the paper, we address the main challenges for market integration of variable renewable energy, relating to price formation, cost recovery, balancing and other grid services. The paper gives an overview of recent scenario studies on electricity price impacts of (1) various generation, energy storage and demand types in different markets, and (2) different market designs and energy/climate policies. Studying markets with very high shares of variable renewable energy requires an improved set of analysis tools for forecasting market outcomes, estimating flexibility needs and sources, and assessing resource adequacy. Key market features need to be investigated within these improved analytical capabilities for systems transitioning to high shares of variable renewable energy, storage and flexible demand. System services that can be supported by markets will likely need to be revisited. Finally, this paper identifies open questions and suggested future market design work for supporting systems with very high shares of variable renewable energy, which are to be addressed in follow-up work of Task 25 collaborative research.

KW - cost recovery

KW - electricity prices

KW - market design

KW - Variable renewable energy

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U2 - 10.1109/EEM54602.2022.9921152

DO - 10.1109/EEM54602.2022.9921152

M3 - Conference article in proceedings

AN - SCOPUS:85141158985

BT - 18th International Conference on the European Energy Market, EEM 2022

PB - IEEE Institute of Electrical and Electronic Engineers

T2 - 18th International Conference on the European Energy Market, EEM 2022

Y2 - 13 September 2022 through 15 September 2022

ER -

Addressing Market Issues in Electrical Power Systems with Large Shares of Variable Renewable Energy

Abstract

Conference

Funding

UN SDGs

Keywords

Access to Document

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IEA Wind Task 25 Design and Operation of Energy Systems with Large Amounts of Variable Generation

Cite this

Addressing Market Issues in Electrical Power Systems with Large Shares of Variable Renewable Energy

Abstract

Conference

Funding

UN SDGs

Keywords

Access to Document

Other files and links

Fingerprint

Projects

IEA Wind Task 25 Design and Operation of Energy Systems with Large Amounts of Variable Generation

Cite this