WIT Press


The Future Design Of Electricity Markets: Capacity Payments Or Smart Solutions?

Price

Free (open access)

Paper DOI

10.2495/EQ140191

Volume

190

Pages

12

Page Range

179 - 190

Published

2014

Size

1,223 kb

Author(s)

R. Haas

Abstract

Currently, increasing shares of intermittent renewable energy sources (RES) are changing the common pattern of electricity markets, especially in Western Europe. This development has led to the call for capacity markets in addition to the current energy-only markets. The objective of this paper is to discuss the relevance and the effects of capacity markets and the alternatives. The most important conclusion is that the evolution of a flexible system for the renewable integration of RES, considering other elements such as grid extension, smart grids, technical demand-side management, economic demand response and short and long-term storage, is favorable to the capacity markets in Western Europe and may also serve as a role model for largely RES-based electricity suppliers in other countries world-wide. Keywords: electricity markets, intermittent renewables, capacity payments.

Keywords

electricity markets, intermittent renewables, capacity payments.