Title
Innovative Electricity Market Designs to Support a Transition to (Near) 100% Renewable Power System: First Results from H2020 TradeRES Project
Author
Estanqueiro, Ana (Laboratório Nacional de Energia e Geologia)
Strbac, Goran (Imperial College London)
Chrysanthopoulos, Nikolaos (Imperial College London)
Santos, Gabriel (Polytechnic of Porto)
Johanndeiter, Silke (EnBW AG)
Algarvio, Hugo (Laboratório Nacional de Energia e Geologia)
Syse, Helleik (Bityoga)
Sperber, Evelyn (Deutsches Zentrum für Luft- und Raumfahrt e.V. (DLR))
Wang, Ni (TNO)
Sanchez Jimenez, I.J. (TU Delft Energie and Industrie)
Qiu, Dawei (Imperial College London)
Vale, Zita (Polytechnic of Porto)
Nienhaus, Kristina (Deutsches Zentrum für Luft- und Raumfahrt e.V. (DLR))
Kochems, Johannes (Deutsches Zentrum für Luft- und Raumfahrt e.V. (DLR))
Schimeczek, Christoph (Deutsches Zentrum für Luft- und Raumfahrt e.V. (DLR))
Sijm, Jos (DIANA FEA)
De Vries, Laurens (TU Delft Energie and Industrie) 
Lopes, Fernando (Laboratório Nacional de Energia e Geologia)
Couto, António (Laboratório Nacional de Energia e Geologia)
Date
2023
Abstract
Developing innovative electricity market designs to facilitate a sustainable transition to (near) 100% renewable power systems while meeting societal needs is a crucial and actual topic of research. This article presents preliminary key findings from the H2020 European project TradeRES, addressing this critical topic. The project uses agent-based and optimization models to effectively capture the behaviour of different market players, and to analyse the current and future power system energy mixes of selected European case studies with different physical and spatial scales from: i) local energy communities and local energy markets (LEMs); ii) national/regional - the Netherlands, Germany, and Iberia (Portugal and Spain); and iii) pan-European energy markets. The first results on LEMs indicate a substantial economic benefit for participants and enhanced revenue streams for distributed energy resources, able to i) incentivise further decentralised investments; ii) promote the growth of variable renewable energy systems (vRES) and iii) increase flexibility at the local level. The outcomes are sensitive to the tariffs’ structure, while the retail sector competitiveness was identified as a critical parameter affecting its efficiency. For the pan-European and national/regional case studies, the first set of simulations had consistent outcomes, namely, by pointing out current design of energy-only markets to be insufficient to incentivize the high levels of vRES foreseen in Europe. Different support schemes (e.g., fixed market premia, contract for differences) were tested and results suggest they may play a relevant role in effectively covering the cost of vRES in a market environment.
Subject
electricity market
vres large scale integration
near 100% res power systems
To reference this document use:
http://resolver.tudelft.nl/uuid:f95ac433-3b57-420c-aae7-24bdeef36fc3
DOI
https://doi.org/10.1049/icp.2023.2748
Embargo date
2024-06-19
Source
IET Conference Proceedings, 2023 (20), 274-281
Event
22nd Wind and Solar Integration Workshop, WIW 2023, 2023-09-26 → 2023-09-28, Copenhagen, Denmark
Bibliographical note
Green Open Access added to TU Delft Institutional Repository ‘You share, we take care!’ – Taverne project https://www.openaccess.nl/en/you-share-we-take-care Otherwise as indicated in the copyright section: the publisher is the copyright holder of this work and the author uses the Dutch legislation to make this work public.
Part of collection
Institutional Repository
Document type
journal article
Rights
© 2023 Ana Estanqueiro, Goran Strbac, Nikolaos Chrysanthopoulos, Gabriel Santos, Silke Johanndeiter, Hugo Algarvio, Helleik Syse, Evelyn Sperber, Ni Wang, I.J. Sanchez Jimenez, Dawei Qiu, Zita Vale, Kristina Nienhaus, Johannes Kochems, Christoph Schimeczek, Jos Sijm, Laurens De Vries, Fernando Lopes, António Couto