Rethinking the electricity market design: Remuneration mechanisms to reach high RES shares. Results from a Spanish case study

Gerres, Timo; Ávila, José Pablo Chaves; Martínez, Francisco Martín; Abbad, Michel Luis Rivier; Cossent, Rafael; Miralles, Álvaro Sánchez

doi:10.1016/j.enpol.2019.03.034

Cited by 34 publications

(14 citation statements)

References 17 publications

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“…As most of the latter imply a switch from fossil energy carriers to electricity, companies would be more exposed to electricity price uncertainty. Electricity markets are expected to be more volatile due to increasing shares of intermittent solar and wind generation (Gerres et al, 2019b), while long-term renewable power purchase agreements (PPA) require contractual stipulations addressing supply volatility of renewables (Baines et al, 2019). The unpredictability of future low-carbon electricity prices contributes to the operational cost uncertainty of low-carbon technologies and represents an additional project risk.…”

Section: Limited Availability Of Affordable Green Electricitymentioning

confidence: 99%

A green COVID-19 recovery of the EU basic materials sector: identifying potentials, barriers and policy solutions

et al. 2021

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This paper explores climate-friendly projects that could be part of the COVID-19 recovery while jump-starting the transition of the European basic materials industry. Findings from a literature review on technology options in advanced development stages for climate-friendly production, enhanced sorting, and recycling of steel, cement, aluminium, and plastics, are combined with insights from interviews with 31 European stakeholders in these sectors about the practical and economic feasibility of these technology options. Results indicate that with an estimated investment of 28.9 billion Euros, up to 20% of EU's basic materials could be produced through low-emission processes or additional recycling by 2025 with technologies that are commercially available or at pilot scale today. However, our stakeholder consultation also shows that in order to make these short-term investments viable, six main barriers need to be addressed, namely: (i) the lack of effective and predictable carbon pricing, (ii) the limited availability of affordable green electricity, (iii) the lack of a regulatory framework for circularity, (iv) low technology market readiness and funding, (v) the lack of infrastructure for hydrogen, CO 2 and power, and (vi) the lack of demand for climate-friendly and recycled materials. Based on these insights, the paper proposes elements of a policy package that can create a framework favourable for investments in these technologies; these policies should ideally accompany the recovery package to give credibility to investors that the business case will last beyond the recovery period. Key policy insights:. Technologies for climate-friendly materials production, sorting and recycling can be supported as part of the recovery package but require an enabling policy framework.

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Section: Limited Availability Of Affordable Green Electricitymentioning

confidence: 99%

A green COVID-19 recovery of the EU basic materials sector: identifying potentials, barriers and policy solutions

et al. 2021

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“…However, for storage, where the capital costs are high but operational costs are low, this classical market compensation scheme is problematic. The latter is also true for renewables, and significant research is currently being conducted to design markets that possess a significant share of renewables (Gerres et al 2019;Peng and Poudineh 2019).…”

Section: Marketmentioning

confidence: 99%

The Value of Storage in Electricity Generation: A Qualitative and Quantitative Review

Elshurafa¹

2020

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“…Remuneration models are also addressed in [4], which studies current remuneration models in electricity markets and demonstrated the need to extend the current electricity market design by additional remuneration mechanisms to reach imposed quotas of renewable generation and provide investment incentives for new firm capacity. The work presented in [21] considers the sensitivity of users to electricity prices to establish realtime pricing models considering price-based demand response measures by formulating a real-time pricing sale scheme.…”

Section: Related Workmentioning

confidence: 99%

“…Table 4, players B and C have, in all scenarios the same Shapley value; meaning that these players' contribution to the stability of the coalition process is the same. Table 5 presents the values for the different renumerations approach, namely the basis remuneration, as in equation (4), in which the amount of flexibility is multiplied by the price; the proposed approach without considering the Shapley value, which is obtained using equation (5) but the term 1 come from equation (8). The Shapley value renumeration is obtained using the relative Shapley value present in Table 4 multiplied with the price for flexibility present in equation (3).…”

Section: Specificationsmentioning

confidence: 99%

Fair Remuneration of Energy Consumption Flexibility Using Shapley Value

Faia

Pinto

Vale

2019

Lecture Notes in Computer Science

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This paper proposes a new methodology for fair remuneration of consumers participation in demand response events. With the increasing penetration of renewable energy sources with a high variability; the flexibility from the consumers' side becomes a crucial asset in power and energy systems. However, determining how to effectively remunerate consumers flexibility in a fair way is a challenging task. Current models tend to apply over-simplistic and non-realistic approaches which do not incentivize the participation of the required players. This paper proposes a novel methodology to remunerate consumers flexibility, in a fair way. The proposed model considers different aggregators, which manage the demand response requests within their coalition. After player provide their flexibility, the remuneration is calculated based on the flexibility amount provided by the players, the previous participation in demand response programs, the localization of the players, the type of consumer, the effort put in the provided flexibility amount, and the contribution to the stability of the coalition structure using the Shapley value. Results show that by assigning different weights to the distinct factors that compose the calculation formulation, players remuneration can be adapted to the needs and goals of both the players and the aggregators.

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Rethinking the electricity market design: Remuneration mechanisms to reach high RES shares. Results from a Spanish case study

Cited by 34 publications

References 17 publications

A green COVID-19 recovery of the EU basic materials sector: identifying potentials, barriers and policy solutions

A green COVID-19 recovery of the EU basic materials sector: identifying potentials, barriers and policy solutions

The Value of Storage in Electricity Generation: A Qualitative and Quantitative Review

Fair Remuneration of Energy Consumption Flexibility Using Shapley Value

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