Market Integration of Renewable Generation

Topic Information

Dear Colleagues,

Adapting market designs to the intermittent nature of renewable generation is a process that must have the reduction in forecast error and the avoidance of substantial real-time imbalances at its core. However, flexibility is the key to guarantee the economic viability and security of the supply of carbon-neutral power systems; being aggregators, citizen energy communities, and new flexible players, they are important agents of future power systems. Indeed, with increasing penetrations of distributed generation, the distribution system operator has a major role to play in facilitating the active participation of local players, accommodating new distributed generation and transitioning to a more flexible and democratised power system where smart grid services, self-consumption, smart meters, local trades, peer-to-peer markets, and new marketplaces and products will be required. Therefore, we invite you to submit your research or review papers considering (but not limited to) the following subjects:

• The impacts of increasing penetrations of renewables in national/regional markets;
• New market designs, products, and rules for decarbonised day-ahead and intraday markets;
• Full investment-recovery of renewables in liberalized markets without externalities;
• Decentralised investment incentive mechanisms for a net-zero electricity system;
• Improving forecasting and information transparency in the new market designs;
• The role of aggregators, virtual power plants, local energy communities, and new flexible players in the road to carbon-neutral and strongly liberalised power systems;
• New designs of local energy and flexibility markets operating in the distribution grid level;
• New local marketplaces, innovative flexibility services, and redesign of products;
• The role of transmission networks and cross-border exchange in market integration and coupling.

Dr. Ana Estanqueiro
Dr. Nikolaos Chrysanthopoulos
Dr. Hugo Algarvio
Topic Editors

Keywords

Participating Journals

Journal Name	Impact Factor	CiteScore	Launched Year	First Decision (median)	APC
Electricity electricity	-	4.8	2020	27.9 Days	CHF 1000
Energies energies	3.0	6.2	2008	16.8 Days	CHF 2600
Modelling modelling	1.3	2.7	2020	18.9 Days	CHF 1000
Sustainability sustainability	3.3	6.8	2009	19.7 Days	CHF 2400
Wind wind	-	-	2021	35.7 Days	CHF 1000

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Published Papers (6 papers)

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All Electricity Energies Modelling Sustainability Wind

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22 pages, 4800 KiB  

Open AccessArticle

Strategic Bidding to Increase the Market Value of Variable Renewable Generators in Electricity Markets

by Vivian Sousa and Hugo Algarvio

Energies 2025, 18(7), 1586; https://doi.org/10.3390/en18071586 - 22 Mar 2025

Viewed by 344

Abstract

The 2050 global ambition for a carbon-neutral society is increasing the penetration of the most competitive variable renewable technologies, onshore wind and solar PV. These technologies are known for their near-zero marginal costs but highly variable time-dependent generation. Power systems with major penetrations [...] Read more.

The 2050 global ambition for a carbon-neutral society is increasing the penetration of the most competitive variable renewable technologies, onshore wind and solar PV. These technologies are known for their near-zero marginal costs but highly variable time-dependent generation. Power systems with major penetrations of variable generation need high balancing flexibility to guarantee their stability by maintaining the equilibrium between demand and supply. Electricity markets were designed for dispatchable technologies. Support schemes are used to incentivize and de-risk the investment in variable renewables, since actual market designs are riskier for their active participation. This study presents three strategic bidding strategies for the active participation of variable renewables in electricity markets based on probabilistic quantile-based forecasts. This case study examines the levels of active market participation for a wind power producer (WPP) in the Iberian electricity market and the Portuguese balancing markets, where WPPs are financially responsible for imbalances and operate without support schemes in the first and second stages of the Iberian market designs. Results from this study indicate that the WPP has the potential to increase its market value between 36% and 155% if participating in the tertiary and secondary balancing markets completely adapted to its design, respectively. However, considering the use of strategic bidding in actual market designs, by participating in the secondary reserve, the WPP can increase its market value by 10% and 45% when compared with perfect foresight and operational cases, respectively. Full article

(This article belongs to the Topic Market Integration of Renewable Generation)

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12 pages, 896 KiB  

Open AccessArticle

Hybrid Variable Renewable Power Plants: A Case Study of ROR Hydro Arbitrage

by Isabel Catarino, Inês Romão and Ana Estanqueiro

Energies 2025, 18(3), 585; https://doi.org/10.3390/en18030585 - 26 Jan 2025

Viewed by 632

Abstract

Wind and solar energy sources, while sustainable, are inherently variable in their power generation, posing challenges to grid stability due to their non-dispatchable nature. To address this issue, this study explores the synergistic optimization of wind and solar photovoltaic resources to mitigate power [...] Read more.

Wind and solar energy sources, while sustainable, are inherently variable in their power generation, posing challenges to grid stability due to their non-dispatchable nature. To address this issue, this study explores the synergistic optimization of wind and solar photovoltaic resources to mitigate power output variability, reducing the strain on local grids and lessening the reliance on balancing power in high-penetration renewable energy systems. This critical role of providing stability can be effectively fulfilled by run-of-river hydropower plants, which can complement fluctuations without compromising their standard operational capabilities. In this research, we employ a straightforward energy balance model to analyze the feasibility of a 100 MW virtual hybrid power plant, focusing on the northern region of Portugal as a case study. Leveraging actual consumption and conceptual production data, our investigation identifies a specific run-of-river plant that aligns with the proposed strategy, demonstrating the practical applicability of this approach. Full article

(This article belongs to the Topic Market Integration of Renewable Generation)

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20 pages, 3186 KiB  

Open AccessArticle

A Wind Offset Paradox: Alberta’s Wind Fleet Displacing Greenhouse Gas Emissions and Depressing Future Offset Values

by Faith Nobert, Tim Weis, Andrew Leach and Sergi Arús García

Wind 2025, 5(1), 2; https://doi.org/10.3390/wind5010002 - 24 Jan 2025

Viewed by 579

Abstract

The introduction of a significant industrial carbon price in Alberta, Canada, has precipitated major changes in its electricity market, both for fossil fuel generators, which has resulted in a rapid transition from coal to natural gas, as well as for renewable energy projects, [...] Read more.

The introduction of a significant industrial carbon price in Alberta, Canada, has precipitated major changes in its electricity market, both for fossil fuel generators, which has resulted in a rapid transition from coal to natural gas, as well as for renewable energy projects, which can monetize emission offset credits. Coal, which generated close to half of the electricity in the province in 2016 before the major changes were introduced, had fallen to less than 8 percent by the end of 2023 and was completely phased out by June 2024. Conversely, wind energy grew from 6 to 12 percent of the annual supply, in part due to the increasing value of the carbon credits whose value is connected to the deemed greenhouse emissions they are displacing. As wind energy increased in penetration, it lowered its own market price, which was discounted from the average market price by 10–43 percent, but in turn increased the relative importance of its offset. This paper examines the evolution of emissions displaced by wind energy in Alberta by considering 10 years of historical merit order data and creating a counterfactual scenario where historical wind generation is replaced by next-in-merit units. On average, coal made up 84 percent of the marginal energy and 93 percent of the marginal emissions in 2018. As the coal capacity declined, natural gas units replaced coal on the margins, jumping from 21 percent of next-in-merit generation in 2020 to 84 percent in 2023. Alberta uses a deemed emissions displacement factor, which is a combination of historical build and operating margins that declined from 0.65 tCO₂e/MWh in 2010 to 0.52 tCO₂e/MWh in 2023. Using the counterfactual scenario, an alternative offset value is considered, which had a maximum difference of 57 percent (9 CAD/MWh) of increased value over the actual historical offset. However, the counterfactual rate of emission offsets fell to near parity with the deemed grid displacement factor by 2022 as natural gas became increasingly dominant in the market. As the carbon price is scheduled to increase from 65 CAD/tCO₂e in 2023 to 170 CAD/tCO₂e by 2030, the provincial offset could reach a maximum value of 53 CAD/MWh in 2030 but begin to decline thereafter as the carbon price drives decarbonization, thereby lowering displaced emissions in either method of calculation. The introduction of significant carbon pricing into a thermally dominated electricity market resulted in more emissions being displaced by renewable energy than they were credited for in the short term, but the resultant decarbonization of the grid decreases the long-term value of emission offsets. Full article

(This article belongs to the Topic Market Integration of Renewable Generation)

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16 pages, 2405 KiB  

Open AccessArticle

Optimization Dispatch of Distribution Network–Prosumer Group–Prosumer Considering Flexible Reserve Resources of Prosumer

by Hao Zhong, Lanfang Li, Qiujie Wang, Xueting Wang and Xinghuo Wang

Energies 2024, 17(22), 5731; https://doi.org/10.3390/en17225731 - 15 Nov 2024

Cited by 1 | Viewed by 745

Abstract

The bidirectional uncertainty of source and load creates scarcity in the reserve resources of the distribution network. Therefore, it is highly significant for the safe and economic operation of the system to harness spare energy storage capacity from prosumers to provide reserves. This [...] Read more.

The bidirectional uncertainty of source and load creates scarcity in the reserve resources of the distribution network. Therefore, it is highly significant for the safe and economic operation of the system to harness spare energy storage capacity from prosumers to provide reserves. This paper proposes a bi-layer optimal scheduling model of “distribution network–prosumer group–prosumer” that considers the flexible reserve resources of a prosumer. The upper layer is the “distribution network–prosumer group” optimization model, in which the distribution network sets the electricity price and reserve price according to its own economic benefit and sends it to the prosumer group and guides it to participate in the scheduling of the resources of the prosumer. The lower layer is the “prosumer group–prosumer” optimization model, where the prosumer group incentivizes the prosumer to adjust its energy storage charging and discharging plans through prices and mobilize its own resources to provide flexible reserve resources. The results show that the optimal method proposed in this paper can fully utilize flexible reserve resources from prosumers, improve the economy of distribution network operations, and reduce the pressure of providing reserves using the upper grid. Full article

(This article belongs to the Topic Market Integration of Renewable Generation)

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17 pages, 5911 KiB  

Open AccessArticle

Research on the Multi-Agent Evolutionary Game Behavior of Joint Operation between Coal Power Enterprises and New Energy Power Enterprises under Government Supervision

by Jingxiao Chen, Lei Zhang and Gaodan Deng

Energies 2024, 17(18), 4553; https://doi.org/10.3390/en17184553 - 11 Sep 2024

Cited by 1 | Viewed by 759

Abstract

Based on the perspective of joint operation between coal power enterprises and new energy power enterprises (JOCN), this paper constructs an evolutionary game model among coal power enterprises (CPEs), new energy power enterprises (NEPEs) and the government, and analyzes the influencing factors of [...] Read more.

Based on the perspective of joint operation between coal power enterprises and new energy power enterprises (JOCN), this paper constructs an evolutionary game model among coal power enterprises (CPEs), new energy power enterprises (NEPEs) and the government, and analyzes the influencing factors of the final strategy choices of various subjects through evolutionary simulation. The results show that: (1) The game among CPEs, NEPEs and the government in JOCN is a win–win game. (2) The probability of CPEs choosing to participate in the joint operation is positively correlated with additional operating income, government subsidies and environmental costs in coal power generation, while negatively correlated with additional operating costs and spillover effects. (3) The probability of NEPEs choosing to participate in the joint operation is positively correlated with additional operating income, government subsidies and the cost of power loss in new energy power generation, while negatively correlated with additional operating costs and spillover effects. (4) The probability of the government choosing to support joint operation is positively correlated with social welfare, and negatively correlated with the cost of governmental strict supervision. The research results can provide theoretical reference for enterprises and the government in the future transformations and policy formulation. Full article

(This article belongs to the Topic Market Integration of Renewable Generation)

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24 pages, 7275 KiB  

Open AccessArticle

Green Hydrogen Driven by Wind and Solar—An Australian Case Study

by Glen Currie, Edward Behrens, Samuel Bolitho, Michael Coen and Thomas Wilson

Wind 2024, 4(2), 111-134; https://doi.org/10.3390/wind4020006 - 12 Apr 2024

Cited by 2 | Viewed by 2596

Abstract

The energy transition to wind and solar opens up opportunities for green hydrogen as wind and solar generation tend to bring electricity prices down to very low levels. We evaluate whether green hydrogen can integrate well with wind and solar PVs to improve [...] Read more.

The energy transition to wind and solar opens up opportunities for green hydrogen as wind and solar generation tend to bring electricity prices down to very low levels. We evaluate whether green hydrogen can integrate well with wind and solar PVs to improve the South Australian electricity grid. Green hydrogen can use membrane electrolysis plants during periods of surplus renewable energy. This hydrogen can then be electrified or used in industry. The green hydrogen system was analysed to understand the financial viability and technical impact of integrating green hydrogen. We also used system engineering techniques to understand the system holistically, including the technical, social, environmental, and economic impacts. The results show opportunities for the system to provide seasonal storage, grid firming, and reliability services. Financially, it would need changes to electricity rules to be viable, so at present, it would not be viable without subsidy. Full article

(This article belongs to the Topic Market Integration of Renewable Generation)

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