European security of electricity supply policy in the context of increasing volumes of intermittent generation

In response to plans in France and the UK to implement a capacity mechanism and the recent implementation of a small strategic reserve in Germany, we address the question of the cross-border effects of national implementation of a capacity mechanism in Europe’s interconnected markets. We model some of the effects that may arise when different...

The impact of weather and of batteries on the investment risk for backup gas power plants in a largely renewable energy system

With an increasing wind and photovoltaic share, the German generation mix becomes more weather-dependent. Backup technologies can help to bridge scarcity moments. These rare moments with high prices are the main events for their cost recovery. However, the uncertain revenue flow combined with long payback periods leads to high investment...

Securing the public interest in electricity generation markets. The myths of the invisible hand and the copper plate

Two aspects of investment in generation capacity in liberalized electricity markets are investigated: the question of whether investment will be sufficient to meet society's goals for the reliability of electricity supply (generation adequacy) and the question of how to coordinate investment in electricity generation capacity in a competitive...

Regulation of gas infrastructure expansion

The topic of this dissertation is the regulation of gas infrastructure expansion in the European Union (EU). While the gas market has been liberalised, the gas infrastructure has largely remained in the regulated domain. However, not necessarily all gas infrastructure facilities – such as gas storage facilities, LNG import terminals and certain...

Security of supply during the energy transition: The role of capacity mechanisms

The push for clean energy has caused a rapid growth of renewables in the electricity supply mix of the EU. Although one would assume that the impact of these technologies is entirely positive, recent research and experience indicate that there is reason for concern namely regarding the security of supply. In this context, the concern is how...

Regulatory Design of Capacity Remuneration Mechanisms in Regional and Low-Carbon Electric Power Markets

Capacity remuneration mechanisms (CRMs) are “climbing” regulatory agendas in all liberalised power sectors, especially in the European Union. CRMs are introduced to improve system reliability and to minimise power shortages to an economically efficient extent. These schemes will have a central role in future power systems. This PhD thesis...

The effectiveness of capacity markets in the presence of a high portfolio share of renewable energy sources

The effectiveness of a capacity market is analyzed by simulating three conditions that may cause suboptimal investment in the electricity generation: imperfect information and uncertainty; declining demand shocks resulting in load loss; and a growing share of renewable energy sources in the generation portfolio. Implementation of a capacity...

An analysis of a forward capacity market with long-term contracts

We analyze the effectiveness of a forward capacity market (FCM) with long-term contracts in an electricity market in the presence of a growing share of renewable energy. An agent-based model is used for this analysis. Capacity markets can compensate for the deteriorating incentive to invest in controllable power plants when the share of...

The effect of short term storage operation on resource adequacy

The potential contribution of short term storage technologies such as batteries to resource adequacy is becoming increasingly important in power systems with high penetrations of Variable Renewable Energy Sources (VRES). However, unlike generators, there are multiple ways in which storage may be operated to contribute to resource adequacy. We...

Potential effects of risk aversion on technology choices and security of supply: Researched with an agent-based model of a liberalised electricity market

Given the current vulnerability of the profitability of power plants to price volatilities and government policy changes, the role of risk considerations in power plant investment decisions becomes increasingly important. However, when we look at simulation studies that look into the long-term impact of different policy designs on electricity...

Implementing capacity subscription in the Dutch electricity market: An impact assessment using fundamental analysis

The production of renewable energy is steadily going up, and as a result of the (almost) zero-marginal cost renewables, the marginal cost based electricity prices go down. While the need for backup generation increases due to the fluctuating availability of renewable energy, the generation units that supply electricity during demand peaks see...

Orchestrating Investment in an Evolving Power Sector: An Analysis of Capacity Markets

There is increasing concern that energy-only markets are inadequate when it comes to ensuring generation adequacy in the power sector over the long term. This is reflected in the fact that several Independent System Operators have commissioned studies about security of supply over the last few years; OFGEM and CEER (Council of European Energy...

The Impact of Extreme Weather Conditions on a Renewable Dominated Power System in Germany and Measures to Maintain Security of Supply

With an increasing share of photovoltaic and wind in the German generation mix, the power supply reduces its CO2 emission and becomes more weather dependent. In order to guarantee the security of supply, the volatile power output by the renewables asks for compensation by other sources. These backup technologies have to cope with a variety of...

Security of supply in the import value chain of low-carbon hydrogen

The Russian invasion of Ukraine has created a renewed focus on both climate change and security of supply of energy. The European Commission’s Green Deal highlights the importance of the clean energy carrier ’low-carbon hydrogen’ to combat climate change. Simultaneously, in the new REPowerEU package, the European Commission emphasises the...

Understanding the geopolitical implications of a transition to green hydrogen as the dominant energy carrier

The effects of climate change on the global community are becoming more strongly felt every year, creating devastation on our everyday lives. To combat that, a transition to low-carbon energy carriers is being envisioned by state and private actors through pledges during climate conferences and several candidate carriers are proposed. Among...