Market Signals as Adequacy Indicators for Future Flexible Power Systems

De Vries, Laurens; Sanchez Jimenez, I.J.

doi:10.1093/ooenergy/oiab007

Market Signals as Adequacy Indicators for Future Flexible Power Systems

Title

Market Signals as Adequacy Indicators for Future Flexible Power Systems

Author

De Vries, Laurens (TU Delft Energy & Industry)
Sanchez Jimenez, I.J. (TU Delft Energy & Industry)

Date

2022

Abstract

Existing indicators of electricity system adequacy need to be supplemented with economic performance indicators. As power systems are decarbonized, energy storage technologies are being developed and demand is becoming more flexible. Reliability standards need to reflect the price elasticity of these sources of flexibility. During scarcity situations, this increased demand flexibility may prevent outages, but still lead to high electricity prices. If the average electricity price is well above the average cost of power supply, this can be an indication that the system is not adequate, even if the outage rate does not exceed the current reliability standards.

Subject

electricity markets
renewable energy
adequacy assessment
system adequacy
OA-Fund TU Delft

To reference this document use:

http://resolver.tudelft.nl/uuid:227464b0-b54d-4397-8283-a48938d1ce1f

DOI

https://doi.org/10.1093/ooenergy/oiab007

ISSN

2752-5082

Source

Oxford Open Energy, 1

Part of collection

Institutional Repository