The Dynamics of Variable Renewable Energy Integration: A Multi-Dimensional Framework for Future Power Systems

  • Program Utilities & Renewables Utilities & Renewables
  • Type Discussion paper
  • Date 18 May 2025
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Abstract

This paper examines the impacts of integrating a high share of variable renewable energy (VRE) on power systems and markets, proposing a multi-dimensional framework to analyze its technical, economic, and regulatory challenges. A structured literature review and topic modeling are employed, and key constraints, incentives, signals, and risks associated with VRE integration are identified. The authors then propose measures to address the key challenges posed by VRE at different stages of system penetration. The analysis is illustrated with practical examples from diverse electricity systems worldwide, demonstrating a common set of solutions applied across different countries, each with distinct legal, regulatory, and technical contexts. A holistic approach – combining technological innovation, adaptive governance, and coordinated policy – will be crucial for ensuring an affordable, reliable, and sustainable electricity supply in a VRE-dominant future.

Authors

Selahattin Murat Sirin

Selahattin Murat Sirin

Senior Fellow- Utilities & Renewables Dr. Selahattin Murat Sirin is a Research Fellow at KAPSARC specializing in regulation, business economics, electricity markets, and sustainable energy.…

Dr. Selahattin Murat Sirin is a Research Fellow at KAPSARC specializing in regulation, business economics, electricity markets, and sustainable energy. He earned his Ph.D. from Ivey Business School at Western University and holds an M.P.A. in Public Administration from Harvard University, an M.S. in European Studies from the Middle East Technical University, and a B.A. in Economics from Ankara University. He has published academic papers and reports on subjects, such as renewable energy policies and electricity markets.

Expertise

  • Electricity Market
  • Policy Analysis
  • Energy Transition

Publications See all Selahattin Murat Sirin’s publications

Sandrine Wachon

Sandrine Wachon

Visiting Researcher- Utilities & Renewables Sandrine Wachon is a Visiting Researcher in the Utilities & Renewables Department at KAPSARC, with extensive expertise in power sector…

Sandrine Wachon is a Visiting Researcher in the Utilities & Renewables Department at KAPSARC, with extensive expertise in power sector reforms, regulation, and market design. Her career began at RTE (Réseau de Transport d'Électricité), the French transmission system operator (TSO), where she managed projects in Southeast Europe, including establishing Serbia’s TSO. She later led international business development at EPEX SPOT, founding power exchanges in Hungary and Serbia and contributing to the expansion fo the European internal power market. Sandrine advised public authorities globally on power trading and financial clearing solutions. Since 2022, she has worked as an independent consultant, advising on impact investments in energy and power market organisation and design. Additionally, she lectures in environmental economics at the University of Corsica and has previously taught at La Sorbonne. Sandrine holds a Ph.D. in Economics from La Sorbonne, a degree in Vietnamese from Langues’O, and is an alumna of the European Executive Programme at the École Nationale d’Administration.

Expertise

  • Energy policy and regulation
  • Power system and market design
  • Electricity trading
  • Energy transition
  • Energy and climate policy

Publications See all Sandrine Wachon’s publications

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