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Market design options for electricity markets with high variable renewable generation

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  • Lynch, Muireann
  • Longoria, Genaro
  • Curtis, John

Abstract

Variable renewable electricity generation presents challenges for traditional power markets. The island of Ireland has high levels of renewable generation by international standards, with even higher levels envisaged, and so must address these challenges. Market design to accommodate a growing share of variable renewable generation is informed and constrained by EU policy, and progress to date has been mixed. A qualitative review finds that market redesign is advised to address price cannibalisation, reveal consumer preferences for security and protect vulnerable households. Options for market design are presented, and recommendations for short and medium-term policy action are made.

Suggested Citation

  • Lynch, Muireann & Longoria, Genaro & Curtis, John, 2021. "Market design options for electricity markets with high variable renewable generation," Utilities Policy, Elsevier, vol. 73(C).
    • Handle: RePEc:eee:juipol:v:73:y:2021:i:c:s0957178721001454
    DOI: 10.1016/j.jup.2021.101312
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