Browse
Keywords
Records with Keyword: Renewable and Sustainable Energy
326. LAPSE:2023.27560
A Study on Optimal Power System Reinforcement Measures Following Renewable Energy Expansion
April 4, 2023 (v1)
Subject: Energy Systems
Keywords: DB establishment, dynamic analysis, reinforcement measure, Renewable and Sustainable Energy, static analysis
Renewable energy generation capacity in Korea is expected to reach about 63.8 GW by 2030 based on calculations using values from a power plan survey (Korea’s renewable energy power generation project plan implemented in September 2017) and the “3020” implementation plan prescribed in the 8th Basic Plan for Long-Term Electricity Supply and Demand that was announced in 2017. In order for the electrical grid to accommodate this capacity, an appropriate power system reinforcement plan is critical. In this paper, a variety of scenarios are constructed involving renewable energy capacity, interconnection measures and reinforcement measures. Based on these scenarios, the impacts of large-scale renewable energy connections on the future power systems are analyzed and a reinforcement plan is proposed based on the system assessment results. First, the scenarios are categorized according to their renewable energy interconnection capacity and electricity supply and demand, from which a database is... [more]
327. LAPSE:2023.27453
Explaining the Diffusion of Energy-Efficient Lighting in India: A Technology Innovation Systems Approach
April 4, 2023 (v1)
Subject: Energy Systems
Keywords: developing countries, energy-efficient technologies, LED, low-carbon technology transfer, Renewable and Sustainable Energy, technology innovation systems (TIS)
Electricity consumption from lighting accounts for about 15% of total power demand and 5−6% of greenhouse gas emissions in developing countries. It is therefore a promising avenue to achieve considerable energy savings through technological innovation and upgrading. India has been very successful in recent years with a nationwide roll-out of modern light-emitting diode (LED) applications. This study uses the framework of technology innovation systems to identify the actors, institutions, and processes behind the diffusion of this technology. Our findings indicate that national innovation strategies, along with low-carbon technology (LCT) transfer policies, helped to bring down the cost of LED lamps in a rapidly expanding domestic market. Based on the findings, we further explore lessons for broader issues of low-carbon technology transfer and suggest an emerging intermediate step between north−south and south−south technology transfer.
328. LAPSE:2023.27443
Implementation Framework for Energy Flexibility Technologies in Alkmaar and Évora
April 4, 2023 (v1)
Subject: Energy Systems
Keywords: energy flexibility, governance, positive energy districts, Renewable and Sustainable Energy, smart city deployment
As energy generation based on renewable resources does not always match energy consumption profiles, Positive Energy Districts (PEDs) should embody energy flexibility technologies to decrease possible negative impacts on existing grids due to, e.g., reverse power flows. As part of the EU H2020 Smart Cities and Communities project POCITYF, the cities Alkmaar (NL) and Évora (PT) aim to support the deployment and market uptake of such districts and in doing so demonstrate innovative and integrated technologies to enable flexibility in the energy system. This paper addresses implementation conditions for energy flexibility technologies that help cities to engender the expected impact and ensure replication of these technologies to other sites. It aims to guide both urban planners and technology solution providers through pitfalls and opportunities that can appear during the design and implementation of PEDs. Taking this into consideration, the RUGGEDISED innovation and implementation frame... [more]
329. LAPSE:2023.27427
Smart Energy in a Smart City: Utopia or Reality? Evidence from Poland
April 4, 2023 (v1)
Subject: Energy Policy
Keywords: distributed generation, Poland, Renewable and Sustainable Energy, smart city, urban policy
The main principles of the smart city concept rely on modern, environmentally friendly technologies. One manifestation of the smart city concept is investments in renewable energy sources (RES), which are currently a popular direction in urban transformation. It makes sense, therefore, to analyse how Polish cities are coping with this challenge and whether they are including the implementation of RES facilities in their development strategies. The aim of the article is to analyze and assess the level at which renewable energy facilities are being implemented or developed in the urban space of cities in Poland as a pillar of the implementation of the smart city concept. This goal is realized on two levels: the theoretical (analysis of strategic documents) and the practical (analysis of the capacity of RES installations, questionnaire studies). The study shows that renewable energy installations are an important part of the development strategies of Polish cities, and especially of those... [more]
330. LAPSE:2023.27394
Field Test of Wind Power Output Fluctuation Control Using an Energy Storage System on Jeju Island
April 4, 2023 (v1)
Subject: Energy Systems
Keywords: energy storage system, fluctuation control, Renewable and Sustainable Energy, small power system, wind power generation
At present, renewable energy installations are expanding to solve both environmental problems and expensive energy fuel import prices in isolated areas. However, in a small-scale power system, rapid output fluctuations of renewable energy may cause power quality problems such as voltage and frequency fluctuations in the power system. To solve this problem, the local government of Jeju Island in South Korea implemented a megawatt (MW)-class pilot project to stabilize the output power of wind turbines using an energy storage system (ESS). In this project, a 0.5 MWh lithium-ion battery was connected to a 3 MW wind turbine via 1 MW power conversion system (PCS). In this paper, the field test results were divided into four categories as follows. First, the performance of stabilizing the output of the wind turbine using ESS was confirmed. Second, the control performance of the ESS was confirmed when the wind turbine suddenly stopped due to an accident. Third, it was confirmed that the ESS di... [more]
331. LAPSE:2023.27382
Prediction of Novel Humified Gas Turbine Cycle Parameters for Ammonia/Hydrogen Fuels
April 4, 2023 (v1)
Subject: Energy Systems
Keywords: Alternative Fuels, ammonia/hydrogen blends, humified gas turbine, Renewable and Sustainable Energy
Carbon emissions reduction via the increase of sustainable energy sources in need of storage defines chemicals such as ammonia as one of the promising solutions for reliable power decarbonisation. However, the implementation of ammonia for fuelling purposes in gas turbines for industry and energy production is challenging when compared to current gas turbines fuelled with methane. One major concern is the efficiency of such systems, as this has direct implications in the profitability of these power schemes. Previous works performed around parameters prediction of standard gas turbine cycles showed that the implementation of ammonia/hydrogen as a fuel for gas turbines presents very limited overall efficiencies. Therefore, this paper covers a new approach of parameters prediction consisting of series of analytical and numerical studies used to determine emissions and efficiencies of a redesigned Brayton cycle fuelled with humidified ammonia/hydrogen blends. The combustion analysis was d... [more]
332. LAPSE:2023.27338
Resource and Load Compatibility Assessment of Wind Energy Offshore of Humboldt County, California
April 4, 2023 (v1)
Subject: Energy Systems
Keywords: floating platform, generation, load, losses, model, offshore wind, power, Renewable and Sustainable Energy, transmission, turbine
Floating offshore wind is being considered in northern California as indicated by the Bureau of Ocean Energy Management’s issuance of a lease consideration in the Humboldt Call Area. Humboldt County offers access to this enormous resource, but local electric load and transmission are limited. The potential impacts of offshore wind generators at three different scales were studied using a regional grid model of Humboldt County. Offshore wind generation was calculated using modeled wind speed data and 12-MW turbine specifications and integrated with projected load and historical generation. Offshore wind farms deployed in the Humboldt Call Area achieve annual capacity factors between 45% and 54% after losses and maintenance. Power output is variable between and within seasons, with full power output 30% of the time and no output approximately 20% of the time. Electricity from a 48-MW wind farm provides 22% of regional load with limited exports. A 144-MW wind farm serves 38% of local load... [more]
333. LAPSE:2023.27327
Operation and Sensitivity Analysis of a Micro-Scale Hybrid Trigeneration System Integrating a Water Steam Cycle and Wind Turbine under Different Reference Scenarios
April 4, 2023 (v1)
Subject: Energy Systems
Keywords: absorption chiller, Biomass, dynamic simulation, hybrid energy system, Renewable and Sustainable Energy, steam turbine, trigeneration, TRNSYS, wind turbine
Renewable energy sources, such as solar, wind, biomass, and geothermal energy, are being more and more adopted in small and micro-scale distributed generation systems. In this context, different hybrid configurations and layouts that may adopt, lead to different energy and economic performance of energy generation systems. In micro-scale applications, biomass and solar energy sources are more frequently investigated in literature compared to other combinations as biomass and wind energy. The analysis of the performance of a novel small-scale trigeneration system is presented in this paper. The system includes biomass boiler, water steam turbine, absorption chiller, and wind turbine, and it is linked to the electric grid by means of a bidirectional connection, allowing to the store virtually the electrical energy produced in excess, and use when needed. For the proposed system, a zootechnical farm and a residential building are considered as case study, including different scenarios for... [more]
334. LAPSE:2023.27286
An Adjusted Weight Metric to Quantify Flexibility Available in Conventional Generators for Low Carbon Power Systems
April 4, 2023 (v1)
Subject: Energy Systems
Keywords: adjusted weight flexibility metric (AWFM), flexibility parameters, flexibility quantification, power system flexibility, power system operations, Renewable and Sustainable Energy
With the increasing shares of intermittent renewable sources in the grid, it becomes increasingly essential to quantify the requirements of the power systems flexibility. In this article, an adjusted weight flexibility metric (AWFM) is developed to quantify the available flexibility within individual generators as well as within the overall system. The developed metric is useful for power system operators who require a fast, simple, and offline metric. This provides a more realistic and accurate quantification of the available technical flexibility without performing time-consuming multi-temporal simulations. Another interesting feature is that it can be used to facilitate scenario comparisons. This is achieved by developing a new framework to assure the consistency of the metric and by proposing a new adjusted weighting mechanism based on correlation analysis and analytic hierarchy process (AHP). A new ranking approach based on flexibility was also proposed to increase the share of th... [more]
335. LAPSE:2023.27284
A Novel Ground-Source Heat Pump with R744 and R1234ze as Refrigerants
April 4, 2023 (v1)
Subject: Energy Systems
Keywords: Carbon Dioxide, energy saving, geothermal, heat pump, historic building, R1234ze, Renewable and Sustainable Energy
The energy-saving potential of heat pump technology is widely recognized in the building sector. In retrofit applications, especially in old and historic buildings, it may be difficult to replace the existing distribution and high-temperature emission systems. Often, historical buildings, especially the listed ones, cannot be thermally insulated; this leads to high temperatures of the heat carrier fluid for heating. In these cases, the main limits are related, on the one hand, to the reaching of the required temperatures, and on the other hand, to the obtaining of good performance even at high temperatures. To address these problems, a suitable solution can be a two-stage heat pump. In this work, a novel concept of a two-stage heat pump is proposed, based on a transcritical cycle that uses the natural fluid R744 (carbon dioxide) with an ejector system. The second refrigerant present in the heat pump and used for the high-temperature stage is the R1234ze, which is an HFO (hydrofluoro-ol... [more]
336. LAPSE:2023.27261
Ratepayer Perspectives on Mid- to Large-Scale Solar Development on Long Island, NY: Lessons for Reducing Siting Conflict through Supported Development Types
April 4, 2023 (v1)
Subject: Energy Systems
Keywords: public perspectives, Renewable and Sustainable Energy, solar energy development, utility ratepayer perceptions
The state of New York has ambitious mandates for reducing greenhouse gas emissions and increasing renewable energy generation. Solar energy will play an important role in reducing greenhouse gas emissions from the electric energy sector. Concerns over solar installations’ impacts to host communities and the environment have led to growing conflicts over solar energy siting on Long Island, in other parts of New York, and throughout the US. Understanding community members’ perspectives is critical for reducing conflict. Solar energy can be deployed more quickly and at lower cost if projects are structured to address the concerns and meet the needs of the community. This paper presents the results of a survey of residential utility ratepayers that examined their perceptions, preferences, and priorities concerning mid- to large-scale solar development on Long Island (250 kW and larger). The survey asked respondents to consider specific installation types, financial models, and other aspect... [more]
337. LAPSE:2023.27258
Generation Capacity Expansion Planning Considering Hourly Dynamics of Renewable Resources
April 4, 2023 (v1)
Subject: Planning & Scheduling
Keywords: energy economics, power system expansion, Renewable and Sustainable Energy, solar PV, stochastic generation planning
As more generation capacity using renewable sources is accommodated in the power system, methods to represent the uncertainty of renewable sources become more important, and stochastic models with different methods for uncertainty representation are introduced. This paper investigates the impacts of hourly variability representation of random variables on a stochastic generation capacity expansion planning model. In order to represent the hourly variability as well as uncertainty of the random parameters such as wind power availability, solar irradiance, and load, AutoRegressive-To-Anything (ARTA) stochastic process is applied. By using autocorrelations and marginal distributions of the random parameters, a stochastic process with hourly intervals is generated, where generated random sample paths are used for scenarios. A mathematical formulation using stochastic programming is presented, and a modified IEEE 300-bus system with transmission line constraints is employed to the mathemati... [more]
338. LAPSE:2023.27204
A Preliminary Assessment of the Potential of Low Percentage Green Hydrogen Blending in the Italian Natural Gas Network
April 4, 2023 (v1)
Subject: Energy Systems
Keywords: hydrogen and compressed natural gas, hydrogen blending, hydrogen strategy, natural gas networks, power-to-hydrogen, Renewable and Sustainable Energy
The growing rate of electricity generation from renewables is leading to new operational and management issues on the power grid because the electricity generated exceeds local requirements and the transportation or storage capacities are inadequate. An interesting option that is under investigation by several years is the opportunity to use the renewable electricity surplus to power electrolyzers that split water into its component parts, with the hydrogen being directly injected into natural gas pipelines for both storage and transportation. This innovative approach merges together the concepts of (i) renewable power-to-hydrogen (P2H) and of (ii) hydrogen blending into natural gas networks. The combination of renewable P2H and hydrogen blending into natural gas networks has a huge potential in terms of environmental and social benefits, but it is still facing several barriers that are technological, economic, legislative. In the framework of the new hydrogen strategy for a climate-ne... [more]
339. LAPSE:2023.27182
An Overview of MnAl Permanent Magnets with a Study on Their Potential in Electrical Machines
April 4, 2023 (v1)
Subject: Energy Systems
Keywords: COMSOL, electrical machines, permanent magnets, rare earth-free, Renewable and Sustainable Energy
In this paper, hard magnetic materials for future use in electrical machines are discussed. Commercialized permanent magnets used today are presented and new magnets are reviewed shortly. Specifically, the magnetic MnAl compound is investigated as a potential material for future generator designs. Experimental results of synthesized MnAl, carbon-doped MnAl and calculated values for MnAl are compared regarding their energy products. The results show that the experimental energy products are far from the theoretically calculated values with ideal conditions due to microstructure-related reasons. The performance of MnAl in a future permanent magnet (PM) generator is investigated with COMSOL, assuming ideal conditions. Simplifications, such as using an ideal hysteresis loop based on measured and calculated saturation magnetization values were done for the COMSOL simulation. The results are compared to those for a ferrite magnet and an NdFeB magnet. For an ideal MnAl hysteresis loop, it wou... [more]
340. LAPSE:2023.27179
Feasibility of a 100% Global Renewable Energy System
April 4, 2023 (v1)
Subject: Energy Systems
Keywords: climate change, EROEI, future, pandemic, Renewable and Sustainable Energy, solar energy, wind energy
Controversy exists as to whether renewable energy (RE) can provide for all the world’s energy needs. The purpose of this paper is to help resolve this vital question. Official forecasts see a resumption of a business-as-usual world after the pandemic-induced recession, with further economic growth out to at least 2050. The novel approach taken in this paper is to assume that such a world is fueled entirely with RE at global energy levels at or above those of today, and then to examine whether this scenario is feasible. Because the intermittent primary electricity sources, wind, and solar power, would have to supply nearly all this energy, a simplification made for this analysis is that they do supply 100% of all energy, including non-electrical energy needs. It is found that the energy that could be delivered by these two sources is much less than often assumed, for several reasons: The declining quality of inputs; the need for inclusion of uncounted environmental costs; the need for e... [more]
341. LAPSE:2023.27177
From Economic to Extrinsic Values of Sustainable Energy: Prestige, Neo-Rentierism, and Geopolitics of the Energy Transition in the Arabian Peninsula
April 4, 2023 (v1)
Subject: Energy Policy
Keywords: energy transition, geopolitics, Gulf Cooperation Council (GCC), nuclear power, political economy, Renewable and Sustainable Energy
Energy transition in the region of the Gulf Cooperation Countries (GCC) has recently commenced and is now being implemented through large-scale renewable projects, nuclear plants, and energy efficiency measures in the built environment. This paper highlights how alternative energies are associated with non-economic factors such as prestige, modernity, and (soft or symbolic) power. It analyzes the specific ways of delivering energy diversification in the Gulf through renewable megaprojects, the reorganization of the energy sector, and the incorporation of nuclear energy as an add-on source. These decisions serve GCC states in showcasing modernity, maintaining centralized control, posturing geopolitically, and extending the rent distribution mechanisms. On one hand, the energy transition in the Gulf has been domesticated through policies and strategies suiting the political systems in the region. This can have an acceleration effect on this transition. On the other hand, the implications... [more]
342. LAPSE:2023.27119
A New Bi-Level Optimisation Framework for Optimising a Multi-Mode Wave Energy Converter Design: A Case Study for the Marettimo Island, Mediterranean Sea
April 4, 2023 (v1)
Subject: Energy Systems
Keywords: bi-level optimisation method, evolutionary algorithms, geometric parameters, levelised cost of energy, power take-off, Renewable and Sustainable Energy, wave energy converter
To advance commercialisation of ocean wave energy and for the technology to become competitive with other sources of renewable energy, the cost of wave energy harvesting should be significantly reduced. The Mediterranean Sea is a region with a relatively low wave energy potential, but due to the absence of extreme waves, can be considered at the initial stage of the prototype development as a proof of concept. In this study, we focus on the optimisation of a multi-mode wave energy converter inspired by the CETO system to be tested in the west of Sicily, Italy. We develop a computationally efficient spectral-domain model that fully captures the nonlinear dynamics of a wave energy converter (WEC). We consider two different objective functions for the purpose of optimising a WEC: (1) maximise the annual average power output (with no concern for WEC cost), and (2) minimise the levelised cost of energy (LCoE). We develop a new bi-level optimisation framework to simultaneously optimise the W... [more]
343. LAPSE:2023.27104
Analysing the Material Suitability and Concentration Ratio of a Solar-Powered Parabolic trough Collector (PTC) Using Computational Fluid Dynamics
April 3, 2023 (v1)
Subject: Modelling and Simulations
Keywords: clean production, Computational Fluid Dynamics, desalination, parabolic trough collector, Renewable and Sustainable Energy, solar energy, sustainable
Solar-powered desalination is a sustainable solution for countries experiencing water scarcity. Several studies have presented different solutions to provide cleaner production in desalination systems. Parabolic trough collector (PTC) is one of these solutions that has proven to be superior among solar concentrators. Furthermore, a number of studies have investigated the use of PTC for distillation of saline water in response to water scarcity. In this study, a modified PTC model was developed, in which the heat exchanger was replaced by a condensation tube to reduce the energy consumption, and a black layer was introduced to the surface of the receiver to enhance its absorptance. As a reference case, the system productivity according to average solar intensities in Zagazig, located at 30°34′N 31°30′E in the North East of Egypt, is estimated. The results indicated that the maximum production rate that can be attained is 1.72 kg/h. Then, the structure of the system is evaluated with the... [more]
344. LAPSE:2023.27103
Toward the Optimal Operation of Hybrid Renewable Energy Resources in Microgrids
April 3, 2023 (v1)
Subject: Environment
Keywords: cost minimization, microgrids, optimal sizing problems, optimization problems, Renewable and Sustainable Energy, sustainable development
Renewable energy sources are environmentally friendly and cost-efficient. However, the problem with these renewable resources is their heavy reliance on weather conditions. Thus, at times, these solutions are not guaranteed to meet the required demand all the time. For this, hybrid microgrids are introduced, which have a combination of both renewable energy sources and non-renewable energy resources. In this paper, a cost-efficient optimization algorithm is proposed that minimizes the use of non-renewable energy sources. It maximizes the use of renewable energy resources by meeting the demand for utility grids. Real data based on the load and demand of the utility grids in Italy is used, and a system that determines the optimal sizing of the microgrid and a daily plan is introduced to optimize the renewable resources operations. As part of the proposal, the objective function for the operation and planning of the microgrid in such a way to minimize cost is formulated. Moreover, a varia... [more]
345. LAPSE:2023.27095
The Green Versus Green Trap and a Way Forward
April 3, 2023 (v1)
Subject: Energy Policy
Keywords: biodiversity, climate, integrative policy support, Renewable and Sustainable Energy, social participation
Massive deployment of renewables is considered as a decisive step in most countries’ climate efforts. However, at the local scale, it is also perceived by many as a threat to their rich and diverse natural environment. With this perspective, we argue that this green versus green pseudo-dilemma highlights how crucial a broad societal buy-in is. New, transparent, participatory processes and mechanisms that are oriented toward social licensing can now be employed. A novel, integrative research agenda must orbit around co-creation to enable and promote resource co-management and co-ownership where possible, with increased consensus.
346. LAPSE:2023.27078
Higher Education Learning How to Protect the Environment
April 3, 2023 (v1)
Subject: Environment
Keywords: elementary school, Energy Efficiency, environmental education, experimental learning, Renewable and Sustainable Energy
“Israeli Hope in Academia” is a program, designed by the president of the state of Israel, Reuven Rivlin. The program is based on the perception that Israeli society is changing, from having a clear majority and several minorities to a society comprised of four principal sectors that are roughly similar in size: secular Jews, religious Jews, Haredi (ultra-orthodox) Jews and Arabs. The program acts to encourage a more diverse and culturally competent higher education system that promotes partnership. One of the means to achieve that goal is to create meaningful educational interactions between people from academia and the younger generation of these sectors. Over the past year, students from various faculties in the Holon Institute of Technology (HIT) took part in a course called “Green Ambassadors”, which corresponds with the “Israeli Hope” program. This course was considered an action learning course, which is a course that combines academic learning and social involvement that has an... [more]
347. LAPSE:2023.27046
Grand Challenges in Central Europe: The Relationship of Food Security, Climate Change, and Energy Use
April 3, 2023 (v1)
Subject: Food & Agricultural Processes
Keywords: climate change, food security, grand challenges, multiple factor analysis, regional studies, Renewable and Sustainable Energy, sustainable development goals
Pursuing various sustainable development goals is posing new challenges for societies, policymakers, and researchers alike. This study implements an exploratory approach to address the complexity of food security and nuance its relationship with other grand challenges, such as energy use and climate change, in Central European countries. A multiple factor analysis (MFA) suggests that the three pillars of food security relate differently to climate change: food affordability and food accessibility positively correlate with climate change, while food quality has a negative association with temperature rise. However, if countries switched to renewable energy resources, all three pillars of food security could be achieved simultaneously. The study also underlines regional inequalities regarding grand challenges and emphasizes the need for innovative local solutions, i.e., advances in agriculture systems, educational programs, and the development of environmental technologies that consider... [more]
348. LAPSE:2023.27017
Effect of Sampling Rate on Photovoltaic Self-Consumption in Load Shifting Simulations
April 3, 2023 (v1)
Subject: Energy Systems
Keywords: demand response, load shifting, PV self-consumption, Renewable and Sustainable Energy, sampling rate, Simulation
Grid-connected photovoltaic (PV) capacity is increasing and is currently estimated to account for 3.0% of worldwide energy generation. One strategy to balance fluctuating PV power is to incentivize self-consumption by shifting certain loads. The potential improvement in the amount of self-consumption is usually estimated using smart meter and PV production data. Smart meter data are usually available only at sampling frequences far below the Nyquist limit. In this paper we investigate how this insufficient sampling rate affects the estimated self-consumption potential of shiftable household appliances (washing machines, tumble dryers and dishwashers). We base our analyses on measured consumption data from 16 households in the UK and corresponding PV data. We found that the simulated results have a marked dependence on the data sampling rate. The amount of self-consumed energy estimated with data sampled every 10 min was overestimated by 30−40% compared to estimations using data with 1... [more]
349. LAPSE:2023.27003
Spatial Energy Planning: A Review
April 3, 2023 (v1)
Subject: Planning & Scheduling
Keywords: decision-makers, energy planning, environmental, planning tool, Renewable and Sustainable Energy, social, Sustainability, sustainable energy transition
Despite the fact that some renewable energy (RE) technologies are already techno-economically viable, the high spatial dilution nature of their sources, together with aspects beyond the techno-economic ones (such as environmental, social, cultural, and other aspects), can become strong constraints and barriers when it comes to their integration into electric systems. Therefore, with the objective of determining whether studies on spatial energy planning (SEP) are addressing these issues, a systematic review has been carried out to address whether SEP studies are considering aspects beyond the techno-economic ones when integrating RE technologies and, if they are being considered, how they are addressed in their analyses and what criteria, factors, and indicators of the aspects that are employed. Apart from the revelation that the concept of SEP has been included within high-quality scientific literature for less than ten years, SEP seems to be an unexploited tool with the potential to... [more]
350. LAPSE:2023.26975
Self-Reinforcing Electricity Price Dynamics under the Variable Market Premium Scheme
April 3, 2023 (v1)
Subject: Energy Policy
Keywords: agent-based simulation, energy policy, market premia, price dynamics, Renewable and Sustainable Energy
We report a potential self-reinforcing design flaw in the variable market premium scheme that occurs if variable renewable energy power plants receiving a premium become price-setting in the market. A high share of renewable energy is a goal of many countries on their transformation path to a sustainable future. Accordingly, policies like feed-in tariffs have been in place for many years in many countries to support investment. To foster market alignment, variable market premia have been introduced in at least 12 European countries and a further dozen additional countries world-wide. We demonstrate both with a mathematical model and different scenarios of an agent-based simulation that the combination of variable premia and a high share of hours in which renewables are price-setting may lead to a self-reinforcing downward spiral of prices if unchecked. This is caused by the market premium opening up the bidding space towards negative prices. We discuss possible objections and counterme... [more]
[Show All Keywords]
[0.12 s]

