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Abstract

The choice to use electricity markets to transition to an ultra-high renewable electricity sector depends on whether a high level of reliability and efficiency can be achieved. This study presents a reliability, resiliency and adaptability policy framework for a liberalized power system with a high share of renewables. This framework provides policy insights regarding electricity market reliability and the implications of remuneration mechanisms for renewables. Our analysis shows that it is necessary to reconsider adequacy assessments of liberalized power systems, to enhance the definition of the loss of load probability, and to explicitly consider the probability that the market clears. Under these conditions, electricity markets can theoretically achieve reliability and efficiency with large percentages of variable and intermittent renewable resources with zero or near-zero marginal costs, and market and technical challenges can be addressed.

 

Authors

Frank Felder

Program Director Frank is an engineer, energy policy analyst, and Program Director for Energy Transitions and Electric Power. Prior to joining KAPSARC,… Frank is an engineer, energy policy analyst, and Program Director for Energy Transitions and Electric Power. Prior to joining KAPSARC, Frank was a Research Professor at the School of Planning and Public Policy at Rutgers University, Director of the Rutgers Energy Institute, and Director of the Center for Energy, Economics and Environmental Policy. In those roles, he conducted original and applied research in the areas of electric power system modeling, clean energy policies, and climate change for academic foundations, government agencies, and energy utilities. He has also worked as an economic consultant and nuclear engineer.

Expertise

  • Energy Policy
  • Electricity Restructuring and Energy Modeling

Publications See all Frank Felder’s publications

Marie Petitet

Senior Research Associate Marie is a senior research associate in the Energy Transitions and Electric Power program at KAPSARC. Her current research focuses… Marie is a senior research associate in the Energy Transitions and Electric Power program at KAPSARC. Her current research focuses include power system modeling and market designs for energy transitions. Prior to joining KAPSARC, Marie worked as a research engineer within the Research and Development (R&D) unit of the utility group EDF in Paris, France. During her EDF journey, she worked on long-term and short-term electricity market design, transmission grids at the European scale, and smart-charging opportunities for electric vehicles. Marie also worked as a researcher within the market department of the French Transmission System Operator RTE. Marie holds a Ph.D. in Economics from Dauphine University, PSL (France), an M.Sc. in environmental and energy economics from École des Ponts ParisTech (France), and an M.Sc. in engineering from ENSTA Institut Polytechnique de Paris (France).

Expertise

  • Electricity Markets
  • Energy Transition
  • Energy and Climate Policy

Publications See all Marie Petitet’s publications

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