218 research outputs found
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Integrating Transmission and Energy Markets Mitigates Market Power
Integrating Transmission and Energy Markets Mitigates Market Powe
Opening the Electricity Market to Renewable Energy: Making Better Use of the Grid
Opening the electricity market to renewable energy sources would create flexibility for the further integration of renewable energy, leading to considerably lower costs and emissions. This requires the electricity markets to be reorganized in three ways. Firstly, most trading, and therefore production decision-making, is completed at least one day prior to electricity production. But it must be possible to make adjustments on shorter timescales, in order to effectively utilize wind forecasts, which are only relatively accurate a few hours ahead of production. Secondly, demand for operating reserve to stabilize the grid varies with the uncertainty of forecasts for wind and other generation. Most power plants can offer operating reserve, but only together with electricity. At present, however, operating reserve is traded separately from electricity, often in long-term contracts. And thirdly, network operators generally compensate market participants for grid constraints. But with around 200 GWs of new wind and solar capacity being built by 2020, grid expansion must be combined with transparent, market-based congestion management. The introduction of an independent system operator offering an integrated platform for short-term power trading using a pricing system that internalises network constraints ("nodal pricing") could meet these conditions, allowing further openings of the power market for renewable electrical energy. Experience in the US and simulations for Europe show that international transmission capacity is up to 30% better utilized, congestion management alone yielding annual savings of 1 - 2 billion euros.Market design, renewable energy, nodal pricing, transmission
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Mainstreaming New Renewable Energy Technologies
This paper outlines the benefits, obstacles and options for governments to support international markets for technology
development. International markets for new energy technologies offer greater scope, thereby increasing the incentives and opportunities
for technology improvements. As the market is supported by more independent governments, the confidence of technology developers
and producers that future markets for their products will exist is increasing, thus enabling capital access and inducing R&D investment
and exploration of improved production processes. The bigger markets also allow for international competition, thus allowing for the
application of the best available technology. The government challenge to induce sufficient RD&D remains and with international markets
the benefits and costs of national governments free-riding on international effort needs to be addressed. Finally, we discuss how international
co-operation can be used to evolve the energy system in such a way that it can integrate new technologies at minimum cost
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Market Power and Technological Bias: The Case of Electricity Generation
It is difficult to elminated all market power in electricity markets and it is therefore frequently suggested that some market power should be tolerated: extra revenues contribute to fixed cost recovery,facilitate investment and increase security of supply. This suggestion implicitly assumes all generation technologiesbenefit equally from market power. We assess a mixture of conventional and intermittent generation, eg coal plants and wind power. If all output is sold in the spot market, then intermittent generation benefits less frommarket power than conventional generation. Forward contracts or option contracts reduce the levelof market power but bias against intermittent generators persists
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Auctions to gas transmission access: The British experience
Auctions to gas transmission access: The British experienc
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