Étiqueté : Power generation economics
Thanks to “smart grids”, consumers will gradually become active players in electricity markets, especially by voluntarily decreasing their consumption when receiving scarcity messages from the market operator. For a fast and efficient transition to a more dynamic industry, the regulatory and pricing scheme used both for the endowment of consumers with curtailment rights and the exercise of the options must decentralize the socially optimal dispatching…
The income that wind and solar power receive on the market is affected by the variability of their output. At times of high availability of the primary energy source, they supply electricity at zero marginal costs, shift the supply curve (merit-order curve) to the right and thereby reduce the equilibrium price of electricity during that hour…
This EPRG paper presents a dynamic simulation model of the aggregated Great Britain (GB) generation investment market and seeks to inform the debate about market reform, in particular the response and profitability of thermal investments to policies promoting investment in variable output renewable generation such as wind. (© EPRG)