Integrating renewable energy sources into electricity markets: Power system operation, resource adequacy and market design

Titolo Rivista ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT
Autori/Curatori Umberto Monarca, Ernesto Cassetta, Alessandro Sarra, Cesare Pozzi
Anno di pubblicazione 2016 Fascicolo 2015/2
Lingua Inglese Numero pagine 18 P. 149-166 Dimensione file 210 KB
DOI 10.3280/EFE2015-002010
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Focusing on the Italian power system, the article examines how the national regulatory framework has been modified to effectively accommodate and further increase the share of renewable energy in the energy mix while preserving system reliability. This paper argues that operational changes and regulatory measures adopted so far, which are mainly directed to create a level playing field between different energy sources, constitute a short-term response, and thus of limited effectiveness while increasing cost for consumers. To intensify the de-carbonization process of the Italian power system a more fundamental revision of the current market design is required. In this view, an essential ingredient is the future expansion of the electricity grid starting from a clear recognition of energy mix that we intend to reach in the mid/long term.

Keywords:Renewable energy policy, reliability of supply, resource adequacy, regulation shortcoming, market integration, capacity payment

Jel codes:L52, L94, L98

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Umberto Monarca, Ernesto Cassetta, Alessandro Sarra, Cesare Pozzi, Integrating renewable energy sources into electricity markets: Power system operation, resource adequacy and market design in "ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT" 2/2015, pp 149-166, DOI: 10.3280/EFE2015-002010