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Identifying barriers to large-scale integration of variable renewable electricity into the electricity market: A literature review of market design

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  • Hu, Jing
  • Harmsen, Robert
  • Crijns-Graus, Wina
  • Worrell, Ernst
  • van den Broek, Machteld

Abstract

For reaching the 2°C climate target, the robust growth of electricity generation from variable renewable energy sources (VRE) in the power sector is expected to continue. Accommodation of the power system to the variable, uncertain and locational-dependent outputs of VRE causes integration costs. Integrating VRE into a well-functioning electricity market can minimize integration costs and drive investments in VRE and complementary flexible resources. However, the electricity market in the European Union (EU), as currently designed, seems incapable to deliver this end. This paper aims to provide a comprehensive literature review of barriers to the large-scale market integration of VRE in the EU electricity market design. Based on the set-up of the EU electricity market, a framework was developed to incorporate the most pertinent market integration barriers and resulting market inefficiencies.

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  • Hu, Jing & Harmsen, Robert & Crijns-Graus, Wina & Worrell, Ernst & van den Broek, Machteld, 2018. "Identifying barriers to large-scale integration of variable renewable electricity into the electricity market: A literature review of market design," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P2), pages 2181-2195.
    • Handle: RePEc:eee:rensus:v:81:y:2018:i:p2:p:2181-2195
    DOI: 10.1016/j.rser.2017.06.028
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