Large-scale wind power in European electricity markets: Time for revisiting support schemes and market designs?
AbstractThis paper questions whether current renewable support schemes and electricity market designs are well-suited to host a significant amount of wind energy. Our analysis aims at finding the right equilibrium between market signals received by wind generators and their intrinsic risks. More market signals are needed to give the right incentives for reducing wind integration costs but should not undermine the effectiveness of support schemes. Although several alternatives combining support schemes and market signals could improve the current situation in terms of market signals and risks, feed-in premium support scheme seems actually to be the more balanced option. Furthermore, an adequate sharing of wind generation technical responsibility between the system operator and wind power producers can help to control wind integration costs even in the absence of accurate market signals.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Energy Policy.
Volume (Year): 38 (2010)
Issue (Month): 7 (July)
Contact details of provider:
Web page: http://www.elsevier.com/locate/enpol
Electricity Market Design Renewable Support Schemes Wind Power;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Vincent Rious & Jean-Michel Glachant & Yannick Perez & Philippe Dessante, 2008.
"The diversity of design of TSOs,"
- Rious, V. & Glachant , J. & Perez, Y. & Dessante, P., 2008. "The Diversity of Design of TSOs," Cambridge Working Papers in Economics 0822, Faculty of Economics, University of Cambridge.
- Vincent Rious & Jean-Michel Glachant & Yannick Perez & Philippe Dessante, 2008. "The Diversity of Design of TSOs," Working Papers 0805, Massachusetts Institute of Technology, Center for Energy and Environmental Policy Research.
- Joskow, Paul L., 2006.
"Competitive Electricity Markets and Investment in New Generating Capacity,"
- Paul L. Joskow, 2006. "Competitive Electricity Markets And Investment In New Generating Capacity," Working Papers 0609, Massachusetts Institute of Technology, Center for Energy and Environmental Policy Research.
- Richard J. Green, 2008. "Electricity Wholesale Markets: Designs Now and in a Low-carbon Future," The Energy Journal, International Association for Energy Economics, vol. 0(Special I), pages 95-124.
- Müsgens, F. & Neuhoff, K., 2006. "Modelling Dynamic Constraints in Electricity Markets and the Costs of Uncertain Wind Output," Cambridge Working Papers in Economics 0610, Faculty of Economics, University of Cambridge.
- Arthur Henriot, 2012. "Market design with wind: managing low-predictability in intraday markets," RSCAS Working Papers 2012/63, European University Institute.
- Peeter Pikk & Marko Viiding, 2013. "The dangers of marginal cost based electricity pricing," Baltic Journal of Economics, Baltic International Centre for Economic Policy Studies, vol. 13(1), pages 49-62, July.
- Kaldellis, J.K., 2011. "Critical evaluation of financial supporting schemes for wind-based projects: Case study Greece," Energy Policy, Elsevier, vol. 39(5), pages 2490-2500, May.
- Gawel, Erik & Purkus, Alexandra, 2013. "Promoting the market and system integration of renewable energies through premium schemes: A case study of the German market premium," UFZ Discussion Papers 4/2013, Helmholtz Centre for Environmental Research (UFZ), Division of Social Sciences (ÖKUS).
- Arthur HENRIOT & Jean-Michel GLACHANT, 2013. "Melting-pots and salad bowls: the current debate on electricity market design for RES integration," RSCAS Working Papers 2013/55, European University Institute.
- Jonas Frank & Jana Lippelt & Johannes Pfeiffer, 2012. "Kurz zum Klima: Die Energiewende und das energiepolitische Zieldreieck – Teil 2: Wirtschaftlichkeit und Bezahlbarkeit der Energieversorgung," Ifo Schnelldienst, Ifo Institute for Economic Research at the University of Munich, vol. 65(23), pages 81-85, December.
- Jean Michel Glachant & Arthur Henriot, 2013. "Melting-pots and salad bowls: the current debate on electricity market design for RES integration," Cambridge Working Papers in Economics 1354, Faculty of Economics, University of Cambridge.
- Hallack, Michelle & Vazquez, Miguel, 2013. "European Union regulation of gas transmission services: Challenges in the allocation of network resources through entry/exit schemes," Utilities Policy, Elsevier, vol. 25(C), pages 23-32.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.