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Electricity market auction settings in a future Danish electricity system with a high penetration of renewable energy sources – A comparison of marginal pricing and pay-as-bid

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  • Nielsen, Steffen
  • Sorknæs, Peter
  • Østergaard, Poul Alberg

Abstract

The long-term goal for Danish energy policy is to be free of fossil fuels through the increasing use of renewable energy sources (RES) including fluctuating renewable electricity (FRE).

Suggested Citation

  • Nielsen, Steffen & Sorknæs, Peter & Østergaard, Poul Alberg, 2011. "Electricity market auction settings in a future Danish electricity system with a high penetration of renewable energy sources – A comparison of marginal pricing and pay-as-bid," Energy, Elsevier, vol. 36(7), pages 4434-4444.
    • Handle: RePEc:eee:energy:v:36:y:2011:i:7:p:4434-4444
    DOI: 10.1016/j.energy.2011.03.079
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    References listed on IDEAS

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    1. Vázquez, Carlos & Rivier, Michel & Pérez-Arriaga, Ignacio J., 2001. "If Pay-as-Bid Auctions Are Not a Solution for California, then Why Not a Reliability Market?," The Electricity Journal, Elsevier, vol. 14(4), pages 41-48, May.
    2. Lund, Henrik & Kempton, Willett, 2008. "Integration of renewable energy into the transport and electricity sectors through V2G," Energy Policy, Elsevier, vol. 36(9), pages 3578-3587, September.
    3. Franco, Alessandro & Salza, Pasquale, 2011. "Strategies for optimal penetration of intermittent renewables in complex energy systems based on techno-operational objectives," Renewable Energy, Elsevier, vol. 36(2), pages 743-753.
    4. Fridolfsson, Sven-Olof & Tangerås, Thomas P., 2009. "Market power in the Nordic electricity wholesale market: A survey of the empirical evidence," Energy Policy, Elsevier, vol. 37(9), pages 3681-3692, September.
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    6. Mathiesen, Brian Vad & Lund, Henrik & Karlsson, Kenneth, 2011. "100% Renewable energy systems, climate mitigation and economic growth," Applied Energy, Elsevier, vol. 88(2), pages 488-501, February.
    7. Paul Klemperer, 2004. "Auctions: Theory and Practice," Online economics textbooks, SUNY-Oswego, Department of Economics, number auction1.
    8. Lund, H & Münster, E, 2003. "Modelling of energy systems with a high percentage of CHP and wind power," Renewable Energy, Elsevier, vol. 28(14), pages 2179-2193.
    9. Connolly, D. & Lund, H. & Mathiesen, B.V. & Leahy, M., 2011. "The first step towards a 100% renewable energy-system for Ireland," Applied Energy, Elsevier, vol. 88(2), pages 502-507, February.
    10. Østergaard, Poul Alberg, 2006. "Ancillary services and the integration of substantial quantities of wind power," Applied Energy, Elsevier, vol. 83(5), pages 451-463, May.
    11. Paul Klemperer, 2004. "Survey of Auction Theory, from Auctions: Theory and Practice," Introductory Chapters, in: Auctions: Theory and Practice, Princeton University Press.
    12. Möller, Bernd & Lund, Henrik, 2010. "Conversion of individual natural gas to district heating: Geographical studies of supply costs and consequences for the Danish energy system," Applied Energy, Elsevier, vol. 87(6), pages 1846-1857, June.
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    14. Lund, H. & Mathiesen, B.V., 2009. "Energy system analysis of 100% renewable energy systems—The case of Denmark in years 2030 and 2050," Energy, Elsevier, vol. 34(5), pages 524-531.
    15. Lund, H. & Münster, E., 2003. "Management of surplus electricity-production from a fluctuating renewable-energy source," Applied Energy, Elsevier, vol. 76(1-3), pages 65-74, September.
    16. Alberg Østergaard, Poul, 2003. "Transmission-grid requirements with scattered and fluctuating renewable electricity-sources," Applied Energy, Elsevier, vol. 76(1-3), pages 247-255, September.
    17. Lund, Henrik & Østergaard, Poul Alberg, 2000. "Electric grid and heat planning scenarios with centralised and distributed sources of conventional, CHP and wind generation," Energy, Elsevier, vol. 25(4), pages 299-312.
    18. Münster, Marie & Lund, Henrik, 2009. "Use of waste for heat, electricity and transport—Challenges when performing energy system analysis," Energy, Elsevier, vol. 34(5), pages 636-644.
    19. Paul Klemperer, 2004. "Auctions: Theory and Practice," Online economics textbooks, SUNY-Oswego, Department of Economics, number auction1.
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