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Electricity Market Design and Renewable Energy Sources

A special issue of Energies (ISSN 1996-1073). This special issue belongs to the section "C: Energy Economics and Policy".

Deadline for manuscript submissions: 25 February 2027 | Viewed by 3274

Editor


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Guest Editor
Department of Mechanical Engineering, School of Engineering, University of the Peloponnese, Patra, Greece
Interests: energy storage; electricity markets; hydrogen technologies; wind energy; RES technologies; green mobility

Special Issue Information

Dear Colleagues,

The continuous growth and integration of renewable energy sources (RESs), such as wind and solar photovoltaic power, in contemporary electrical grids has posed significant challenges in the design and operation of electricity markets and networks. Conventional market structures, initially designed around dispatchable centralised power generation, require re-evaluation and adaption to accommodate the variability, distributed generation, and inherent stochastic production of RESs.

The recent example of the massive blackout in the Iberian peninsula, seemingly caused by grid instability due to a high-RES / low-thermal contribution to the electricity mix, demonstrated the significance of a dynamic market design that, among others, enables hybrid generation–storage systems, and promotes incentives for storage and/or synchronous reserve capacity.

This Special Issue aims to explore innovative approaches to electricity market design, which would facilitate the implementation of high shares of RESs in the electricity grids, while ensuring stability, reliability, and financial benefits for the producers, consumers, and prosumers.  We welcome original research and review articles that address theoretical, practical, simulated, and policy-related aspects in the context of the transition to RES-based power generation.

Topics of interest for publication include, but are not limited to, the following:

  • Market designs and pricing mechanisms for RES integration/grid stability.
  • Flexibility markets and demand response.
  • Capacity mechanisms and adequacy under high-RES penetration.
  • Strategies to reduce or manage renewable energy curtailment (e.g., hybrid systems and flexible demand).
  • Dynamic pricing and negative wholesale prices.
  • Ancillary services and balancing market design.
  • Locational marginal pricing and network constraints.
  • Energy storage and its role in market design.
  • Distributed energy resources and peer-to-peer trading.
  • Role of cross-border interconnections in market integration, balancing, and resilience.
  • Policy frameworks and regulatory reforms.
  • Case studies of market evolution in high-RES regions (e.g., Iberian blackout).

We look forward to your valuable contributions to this critical area of research towards sustainability.

Dr. Dimitrios Apostolou
Guest Editor

Manuscript Submission Information

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Keywords

  • electricity market design
  • renewable energy integration
  • grid stability
  • energy storage
  • renewable energy curtailment
  • cross-border interconnections
  • ancillary services
  • power system resilience

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Published Papers (2 papers)

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Research

41 pages, 9335 KB  
Article
Techno-Economic Optimisation of Wind Curtailment Utilisation with Battery Storage Dispatch to Electricity and EV Charging Markets
by Dimitrios Apostolou and Emmanouil Gryparis
Energies 2026, 19(15), 3584; https://doi.org/10.3390/en19153584 - 30 Jul 2026
Viewed by 337
Abstract
This research examined whether battery energy storage could economically utilise event-conditioned curtailed wind energy by optimally allocating stored electricity between wholesale grid export and EV charging. The analysis focused on a 43.2 MW onshore wind farm in Central Greece. Expected non-curtailed generation was [...] Read more.
This research examined whether battery energy storage could economically utilise event-conditioned curtailed wind energy by optimally allocating stored electricity between wholesale grid export and EV charging. The analysis focused on a 43.2 MW onshore wind farm in Central Greece. Expected non-curtailed generation was estimated from ERA5 100 m wind data and the Vestas V117 power curve, calibrated against measured non-event production, and compared with measured output during IPTO-reported curtailment-event hours. The estimated recoverable curtailed energy was treated as the sole BESS charging source, and three scenarios were evaluated: grid-only discharge, EV-only discharge, and joint grid-plus-EV allocation. The dispatch and sizing problem was formulated as an MILP-based, NPV-oriented optimisation including an explicit no-investment alternative and was assessed over a 20-year FCFE horizon using Monte Carlo simulation and sensitivity analyses. The calibrated model reduced holdout nRMSE from 21.92% to 17.83% and mean bias from −4.309 to 0.117 MWh. Under the base scenario, 1537 event hours yielded positive estimated curtailment, corresponding to 10.26 GWh. The no-investment option was the global NPV-maximising solution in all baseline scenarios. The best non-zero BESS Pmax/Emax was 0.25 MW/0.5 MWh, with expected NPVs of −332.6 k€, −356.3 k€, and −321.0 k€ for grid-only, EV-only, and grid-plus-EV operation, respectively. EV-premium breakeven required 1207.5 €/MWh for EV-only and 1186.4 €/MWh for grid-plus-EV operation. The results show that market diversification improves curtailed-energy utilisation, but curtailed-energy-only BESS investment remains financially unattractive under the observed conditions. Full article
(This article belongs to the Special Issue Electricity Market Design and Renewable Energy Sources)
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19 pages, 4227 KB  
Article
Evaluating Battery Degradation Models in Rolling-Horizon BESS Arbitrage Optimization
by Chase Humiston, Mehmet Cetin and Anderson Rodrigo de Queiroz
Energies 2026, 19(4), 1056; https://doi.org/10.3390/en19041056 - 18 Feb 2026
Viewed by 2230
Abstract
Battery Energy Storage Systems (BESS) can benefit from price volatility in electricity markets, but frequent cycling increases degradation and reduces long-term value. This study develops a rolling-horizon dispatch framework in which battery operation is fully price-driven, while degradation is evaluated separately to isolate [...] Read more.
Battery Energy Storage Systems (BESS) can benefit from price volatility in electricity markets, but frequent cycling increases degradation and reduces long-term value. This study develops a rolling-horizon dispatch framework in which battery operation is fully price-driven, while degradation is evaluated separately to isolate the effect of degradation model choice. A 48 h look-ahead window is solved repeatedly and advanced by 24 h, with only the first 24 h of decisions implemented and remaining capacity carried forward. Degradation is assessed using three widely used model classes: Linear-Calendar (LC), Energy-Throughput (ET), and Cycle-Based rainflow (CB) models. The framework is applied to Electric Reliability Council of Texas (ERCOT) 15 min real-time prices for 2024 (Houston Zone). LC and ET result in limited annual capacity loss (≈2%) and modest economic impact, while the CB model predicts substantially higher degradation and large negative valuation. Sensitivity analysis shows that CB-based results are highly dependent on parameter calibration. Overall, the results highlight the strong influence of degradation modeling choices on BESS valuation under rolling-horizon operation. Full article
(This article belongs to the Special Issue Electricity Market Design and Renewable Energy Sources)
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