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The feasibility of the energy-only market in a highly renewable European power system
The Netherlands policy on electricity steers towards a carbon neutral power generation in 2050. Among the studies that focus on long term power system research, none use the starting point of a 100% renewable power system in 2050. It is unknown if such a system is technically feasible given the variability of wind and solar. The generation patterns of intermittent renewables differ continuously, causing the remaining power sources in the system to mitigate the variable IRES generation. Additionally, it is also unknown to what extent the energy only market can incentivise investment. By using the PLEXOS electricity market model, the dispatch of CO2 low generation portfolios and the market prices and net profits of generators can be determined in various scenarios. These scenarios vary on demand changes, capacity factors for wind and solar and primary fuel prices. The results show a great sensitivity of an energy only market under the combination of a demand growth and a meteorological year of low capacity factors, resulting in blackouts and high wholesale market prices. Storage and intermittent renewables, however, do not benefit enough from a scenario with a high annual market price. ; Complex Systems Engineering and Management (CoSEM)
- Delft University of Technology Netherlands
Optimization, energy only, intermittency, electricity market, investment, dispatch, 600, renewable energy sources, merit order
Optimization, energy only, intermittency, electricity market, investment, dispatch, 600, renewable energy sources, merit order
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