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Analyzing Electricity Markets with Increasing Penetration of Large-Scale Renewable Power Generation

Author

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  • Chris Johnathon

    (Faculty of Engineering and Information Sciences, University of Wollongong, Wollongong 2500, Australia)

  • Ashish Prakash Agalgaonkar

    (Faculty of Engineering and Information Sciences, University of Wollongong, Wollongong 2500, Australia)

  • Joel Kennedy

    (Faculty of Health, Engineering and Sciences, University of Southern Queensland, Springfield 4300, Australia)

  • Chayne Planiden

    (Faculty of Engineering and Information Sciences, University of Wollongong, Wollongong 2500, Australia)

Abstract

Global electricity markets are undergoing a rapid transformation in their energy mix to meet commitments towards sustainable electric grids. This change in energy mix engenders significant challenges, specifically concerning the management of non-dispatchable energy resources. System and market operators are required to meet power system security and reliability requirements whilst providing electricity at competitive prices. An overview of electricity markets is provided in this paper with a critical appraisal of each market’s ability to manage the large-scale energy mix transition. This paper provides a commentary on the distinct features of electricity market models implemented around the world and highlights the barriers within these market models that are hindering the energy mix transition. Various researchers and policymakers are proposing solutions and market reforms for the smooth transitioning of the energy mix. This paper presents a systematic review of the proposed solutions in the literature and critiques the effectiveness and ease of implementation of the reviewed solutions. Research gaps and future research directions are indicated to promote further exploration towards the effective integration of large-scale renewable energy technologies.

Suggested Citation

  • Chris Johnathon & Ashish Prakash Agalgaonkar & Joel Kennedy & Chayne Planiden, 2021. "Analyzing Electricity Markets with Increasing Penetration of Large-Scale Renewable Power Generation," Energies, MDPI, vol. 14(22), pages 1-15, November.
    • Handle: RePEc:gam:jeners:v:14:y:2021:i:22:p:7618-:d:679280
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    References listed on IDEAS

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    Cited by:

    1. Johnathon, Chris & Agalgaonkar, Ashish Prakash & Planiden, Chayne & Kennedy, Joel, 2023. "A proposed hedge-based energy market model to manage renewable intermittency," Renewable Energy, Elsevier, vol. 207(C), pages 376-384.
    2. Bikeri Adline & Kazushi Ikeda, 2023. "A Hawkes Model Approach to Modeling Price Spikes in the Japanese Electricity Market," Energies, MDPI, vol. 16(4), pages 1-20, February.

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