Market Design for a High-Renewables Electricity System

Dear Colleagues,

Recent targets for tackling climate change set up by most of the world’s governments envisage dramatic cuts in greenhouse gas emissions as well as an increase in the share of renewable energy in total gross energy production. However, in light of the above developments, it appears that the electricity sector will continue to bear the most significant burden stemming from economy-wide decarbonization, which, in turn, will require high shares of renewable energy sources (RES) in the electricity system. The good news is that technological progress in wind and solar energy coupled with the increased use of interconnection, hydro resources, new battery technologies, and the growing importance of smart meters and smart grids might make the high-renewables electricity system a realistic future scenario. Nevertheless, raising the share of RES will be challenging without substantial modifications to the current market design.

Our Special Issue will assess and evaluate emerging trends in the electricity markets, with a focus on the high-renewables electricity system. We will analyse such issues as wind and solar energy, interconnection, smart meters, smart grids of the future (including their social implications), and peer-to-peer (P2P) electricity trading that is closely connected to the principle of a sharing economy. One of the main issues the Special Issue wants to tackle is how the market design for a high-renewables electricity system would be different from the classical post-liberalisation market design.

In addition, our Special Issue wants to contemplate the problem of how to encourage penetration of RES at electricity markets with the help of policies targeted at promoting renewables on the supply and demand sides in order to address external benefits of renewables. Support for RES should integrate public preferences, and these can be addressed by assessing willingness-to-pay (WTP) for renewable energy sources. Policies to promote renewables closely interact with other climate change mitigation efforts in the energy sector such as energy efficiency improvements in demand and supply and therefore should be developed taking into account energy and climate targets.

Prof. Dr. Wadim Strielkowski
Guest Editor

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