Economic consequences of a capacity market implementation: The case of Poland

Komorowska, Aleksandra; Benalcazar, Pablo; Kaszyński, Przemysław; Kamiński, Jacek

doi:10.1016/j.enpol.2020.111683

Cited by 26 publications

(19 citation statements)

References 52 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…In Ref. [20], the authors analyse the consequences of the introduction of a capacity market in Poland but focus solely on the economic results. They present the impact of the mechanism on electricity prices.…”

Section: Capacity Marketmentioning

confidence: 99%

See 1 more Smart Citation

Can Decarbonisation and Capacity Market Go Together? The Case Study of Poland

Komorowska

2021

Energies

Self Cite

View full text Add to dashboard Cite

In recent years, numerous countries have introduced or considered capacity markets as remuneration mechanisms for long-term capacity adequacy. Since adequacy is frequently linked with thermal power generation, there is an ongoing debate as to whether this instrument could impact decarbonisation. In this context, the paper presents a quantitative assessment of the consequences of introducing a capacity market on decarbonisation pathways. The Polish power system is taken as an example due to its heavy dependence on fossil fuels. To this end, a computable model of the Polish power system is developed and applied to the study of two research scenarios. The first scenario presents the power system without introducing a capacity market, while the latter considers the system with a capacity market in place. The analysis shows that the introduction of a capacity market delays the decarbonisation of the power system and has a negative impact on carbon neutrality. Even though coal-fired units are phased out, they are mainly replaced by natural gas. The method and model developed within this study can be applied to countries where a capacity market is being discussed, and fossil fuels continue to play a dominant role.

show abstract

Section: Capacity Marketmentioning

confidence: 99%

“…The document presents the values that include margins required to ensure power system security. However, these indices have been already studied in the previous paper [20] to investigate the economic consequences of introducing the capacity market in Poland.…”

Section: Study Contributionsmentioning

confidence: 99%

Can Decarbonisation and Capacity Market Go Together? The Case Study of Poland

Komorowska

2021

Energies

Self Cite

View full text Add to dashboard Cite

show abstract

“…To limit the negative impact of the mining operation on the natural environment and meet the EU's environmental objectives, Poland needs to increase its activity in the field of renewables. Even though modern research in Poland relates mainly to the development of technologies within fossil fuels (Bartoszek et al 2021;Dyczko and Malec 2021;Kamiński 2021aKamiński , 2021bKamiński et al 2021;Pedchenko et al 2018;Stecuła and Brodny 2017b), there is a big need and support for investment in renewables (Komorowska et al 2020;Olczak and Komorowska 2021).…”

Section: Res In Polandmentioning

confidence: 99%

Thermal and mechanical energy storage as a chance for energy transformation in Poland

Dyczko¹,

Kamiński²,

Stecuła³

et al. 2021

Polityka Energetyczna – Energy Policy Journal

View full text Add to dashboard Cite

The objective of the European Green Deal is to change Europe into the world's first climate--neutral continent by 2050. Therefore, European countries are developing technological solutions to increase the production of energy from renewable sources of energy. In order to universally implement energy production from renewable energy sources, it is necessary to solve the problem of energy storage. The authors discussed the issue of energy storage and renewable energy sources, reviewing applied thermal and mechanical energy storage solutions. They referred to the energy sector in Poland which is based mainly on mining activities. The method that was used in this paper is a review of thermal and mechanical energy storage solutions. In industrial practice, various solutions on energy storage are developed around the world. The authors reviewed those solutions and described the ones which currently function in practice. Hence, the authors presented the good practices of energy storage technology. Additionally, the authors conducted an analysis of statistical data on the energy sector in Poland. The authors presented data on prime energy production in Poland in 2004-2019. They described how the data has changed over time. Subsequently, they presented and interpreted data on renewable energy sources in Poland. They also showed the situation of Poland compared to other European countries in the context of the share of renewables in the final gross energy consumption.

show abstract

“…It was designed along the lines of the British capacity market. The design and principles of the Polish capacity market are detailed specifically in (Benalcazar and Kamiński 2016;Benalcazar and Nalepka 2017;Komorowska et al 2020;Komorowska and Kamiński 2019;Zamasz 2019).…”

Section: Capacity Auctionsmentioning

confidence: 99%

Capacity remuneration mechanisms: classification and experiences

Komorowska¹

2021

Polityka Energetyczna – Energy Policy Journal

Self Cite

View full text Add to dashboard Cite

Capacity remuneration mechanisms have been imposed globally in order to ensure capacity adequacy and prevent a sharp increase in electricity prices in the long-term. The main causes of their introduction are to provide financial support for companies to generate electricity or reduce consumption in peak demand and ensure sufficient incentives for potential investors. The paper aims to review the capacity remuneration mechanisms introduced in various countries. The following mechanisms are discussed: capacity payment, strategic reserve, reliability options, capacity obligations, and capacity auctions. The paper indicates the main advantages of mechanisms and key challenges related to their introduction and operation as well. The paper contributes to the existing literature by extending and updating the knowledge on the capacity remuneration mechanisms in various energy markets. The results indicate that the most complex schemes are market mechanisms. Regardless of the nature of the traded good (call options, certificates, capacity obligation), the second market structure must be introduced and managed. Consequently, the obligations are imposed on (i) the regulatory body (regulator or transmission system operator), generation companies (or demand-side response), trading companies, and consumers. The other challenge of the implementation of various CRMs is related to the transparent treatment of all technologies. All 102 CRMs should be technologically neutral, but ultimately, some units are more favorable due to their greater impact on the reliability of the power system.

show abstract

Economic consequences of a capacity market implementation: The case of Poland

Cited by 26 publications

References 52 publications

Can Decarbonisation and Capacity Market Go Together? The Case Study of Poland

Can Decarbonisation and Capacity Market Go Together? The Case Study of Poland

Thermal and mechanical energy storage as a chance for energy transformation in Poland

Capacity remuneration mechanisms: classification and experiences

Contact Info

Product

Resources

About