IDEAS home Printed from https://ideas.repec.org/p/enp/wpaper/eprg1719.html
   My bibliography  Save this paper

Designing an electricity wholesale market to accommodate significant renewables penetration: Lessons from Britain

Author

Listed:
  • David M Newbery

    (Energy Policy Research Group, University of Cambridg)

Abstract

The wholesale market has to address two major market failures - inadequate carbon prices in the EU ETS, and the learning externalities and missing futures markets for energy and ancillary services needed to guide flexible dispatchable plant. The paper discusses the importance of locational price signals to guide investment, the need to reform transmission pricing and renewables support. The case for capacity auctions for renewables and quantifies the justifiable level of renewables support. These proposals are consistent with the EU Clean Energy Package, but the nature of the renewables target and its financing should change.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • David M Newbery, 2017. "Designing an electricity wholesale market to accommodate significant renewables penetration: Lessons from Britain," Working Papers EPRG 1719, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
  • Handle: RePEc:enp:wpaper:eprg1719
    as

    Download full text from publisher

    File URL: https://www.jbs.cam.ac.uk/wp-content/uploads/2023/12/eprg-wp1719.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    More about this item

    Keywords

    renewables; market failures; locational signals; contract design;
    All these keywords.

    JEL classification:

    • D47 - Microeconomics - - Market Structure, Pricing, and Design - - - Market Design
    • D52 - Microeconomics - - General Equilibrium and Disequilibrium - - - Incomplete Markets
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:enp:wpaper:eprg1719. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ruth Newman (email available below). General contact details of provider: https://edirc.repec.org/data/jicamuk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.