Beyond capacity markets &amp;#x2014; Delivering capability resources to Europe's decarbonised power system

Gottstein, M.; Skillings, S. A.

doi:10.1109/eem.2012.6254783

Cited by 11 publications

(4 citation statements)

References 2 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Cramton and Ockenfels 2012;Oren 2003;Gottstein and Skillings 2012;Lehmann et al 2015). In the German electricity market, a specific question is whether markets provide sufficient incentives for investments in flexible capacity, which can balance fluctuations in intermittent RES supply (cf.…”

Section: Implications Of Neoclassical Theory For Bioenergy Policy Advicementioning

confidence: 99%

Implications of Economic Theory for Bioenergy Policy Design

Purkus

2016

Concepts and Instruments for a Rational Bioenergy Policy

View full text Add to dashboard Cite

With the allocative and regulative challenges of bioenergy use outlined (see Chap. 2), this chapter's task is to develop the theoretical basis for a rational bioenergy policy. As discussed in Sect. 2.1.3, the defining characteristic of such a rational bioenergy policy is that it strives for efficiency and sustainability under the constraints imposed by multiple interacting market failures and various sources of government failures (cf. Fig. 2.2), while acknowledging the likely non-optimality of outcomes.Given the various allocative and regulative problems involved in bioenergy policy making, there is no single theoretical approach which covers all relevant aspects. Rather, a number of theories promise important insights. The following economic theories have been identified as especially relevant to the problems of bioenergy policy making:1. The neoclassical economics approach to target setting and instrument choice under perfect information as well as under uncertainty (Sect. 3.1); 2. The theory of second-best, which focuses on the handling of multiple market failures and other constraints on optimal policy design (Sect. 3.2); 3. Information economics contributions which examine the implications of incomplete knowledge for policy decision making (Sect. 3.3); 4. The economic theory of order, which examines more closely the constitutive lack of knowledge that policy makers face, drawing implications for the adequacy of structural or process policy measures (Sect. 3.4); 5. New institutional economics, which explores the consequences of imperfect information, positive transaction costs and self-interested policy makerswithin this theory family, the approaches of transaction cost economics, principal-agent theory, the theory of institutional change, and public choice theory appear particularly relevant (Sect. 3.5); 6. Ecological economics, which focuses on the design of sustainable economics systems while taking potential sources of government failure into account (Sect. 3.6).

show abstract

Section: Implications Of Neoclassical Theory For Bioenergy Policy Advicementioning

confidence: 99%

Implications of Economic Theory for Bioenergy Policy Design

Purkus

2016

Concepts and Instruments for a Rational Bioenergy Policy

View full text Add to dashboard Cite

show abstract

“…Reference [67] shows that the demand that occur 1% of time in many systems in the U.S. and Australia could cost about 10% of the total electricity costs. Moreover, customers in the PJM Interconnection saved about $1.2 billion from DR programs [68]. Beside its reliability and economic impacts, DR provides positive environment impacts.…”

Section: B Incentive-based Drmentioning

confidence: 99%

Reducing carbon dioxide emissions from electricity sector using demand side management

Almohaimeed

Suryanarayanan

O'Neill

2021

Energy Sources, Part A: Recovery, Utilization, and Environmenta

View full text Add to dashboard Cite

Increasing demand for energy consumption leads to concerns of global Greenhouse Gas (GHG) emissions. Most of the supplied energy comes from dirty generating units. Since there are no regulations to limit emissions of CO2 from electricity generation, power plants can emit unlimited amount of CO2. This dissertation, first, aims to explain some government directed plans to reduce GHG emissions. It gives an overview about the Clean Power Plan (CPP) and its benefits and challenges. Further, it explains several options of CPP in reducing emissions and its repeal. Further, this dissertation, discusses the Climate Action Plan (CAP) corresponding to Fort Collins, Colorado, U.S. and its timeline targets.Demand side management (DSM) is discussed as a solution from engineering practices to affect GHG.Several options from DSM are investigated to reduce emissions. In fact, reducing energy consumption through DSM leads to a reduction in harmful emissions to the environment. This dissertation aims to identify the best available DSM options that will make the biggest difference for GHG reductions.A framework is created to examine several options of DSM in reducing carbon footprints. The framework states that affecting GHG in electric power system is the main goal. The goal can be achieved by implementing DSM technologies in distribution systems. The framework proposes criteria such as cost, power quality, reliability, environmental collateral, and socioeconomic equity to examine the effectiveness of several alternatives: energy management, communication and intelligence, electrification of heating and transportation, and distributed generation.Multi-Criteria Decision Making (MCDM) algorithms have been proposed to prioritize alternatives and select the ones that achieve suitable emissions reduction. Analytic Hierarchy Process (AHP) is one of the most common tools to perform decision-making analysis. The findings from AHP show that the "communication and intelligence" option is the potential optimal alternative in achieving the goal. Analytic Network Process iii (ANP) is another method for making decisions. It provides feedback and interdependence relationships between all nodes of the problem. It is more realistic and accurate than AHP. The results obtained from ANP suggest that "communication and intelligence" is the optimum technology to reach the target. By using ANP, the overall priority ranking has changed and the difference in priorities has reduced.Institute of Electrical and Electronics Engineers (IEEE) 13-node test feeder is used, through Open Distribution System Simulator (OpenDSS), to perform power flow analysis on yearly load profile corresponding to Fort Collins, Colorado, U.S. The analysis includes simulation for several scenarios from the MCDM alternatives, either individual alternatives or mixed alternatives. The obtained results for the base case show the emissions decreased by 16.26% from 2005 level which comply with the results from emissions indicator released by the city. Integrating the MCDM alternatives indi...

show abstract

“…Eurelectric, the association representing the European electricity industry, has proposed a roadmap to a European capacity market in which the development of national Capacity Mechanisms, and their regional coordination, form the interim steps over the next decade (Eurelectric, 2015). However, there remains a wider question over whether Capacity Mechanisms will endure as an appropriate means of tackling the growing question of security of supply against the aims of decarbonisation and, if the energy-only market is currently incapable of delivering adequate capacity, whether more fundamental redesign of European electricity marketscapable of incorporating new sources of flexibility and reliabilitymay provide a more efficient solution (Gottstein & Skillings, 2012).…”

Section: A Single Eu-wide Capacity Marketmentioning

confidence: 99%

Electricity security in the European Union—The conflict between national Capacity Mechanisms and the Single Market

Hawker

Bell

Gill

2017

Energy Research & Social Science

View full text Add to dashboard Cite

The European Single Market aims to promote trade and competition in electricity generation across the EU, with investment signals for new generation capacity and interconnection coming from zonal electricity prices reflecting scarcity value. However, a growing number of EU Member States have implemented national Capacity Mechanisms in order to ensure future security of supply within their own borders, which may distort the cross-border trade of energy. This local view of energy security is in response to internal technical and economic constraints and a perceived inability of cross-border electricity flows to be a reliable source of capacity at times of maximum stress, in favour of self-sufficiency. A number of routes are available to resolve this conflict through permitting cross-border participation of generators in local Capacity Mechanisms, but this requires resolution of a number of complicating factors, not least a means for properly allocating transmission capacity without introducing further distortions to the energy market. Alternative solutions could be enacted at an EU-level, such as through the alignment of Capacity Mechanisms to a common model, or the introduction of an EU-wide single Capacity Mechanism, but the current regulatory focus appears to remain on resolution of such issues at a national level.

show abstract

Beyond capacity markets — Delivering capability resources to Europe's decarbonised power system

Cited by 11 publications

References 2 publications

Implications of Economic Theory for Bioenergy Policy Design

Implications of Economic Theory for Bioenergy Policy Design

Reducing carbon dioxide emissions from electricity sector using demand side management

Electricity security in the European Union—The conflict between national Capacity Mechanisms and the Single Market

Contact Info

Product

Resources

About