Designing electricity markets for high penetrations of zero or low marginal cost intermittent energy sources

Gordon W. Leslie; David Stern; Akshay Shanker; Michael Hogan

doi:10.1016/j.tej.2020.106847

Designing electricity markets for high penetrations of zero or low marginal cost intermittent energy sources

Gordon W. Leslie, David Stern, Akshay Shanker, Michael Hogan

Research output: Contribution to journal › Article

Abstract

Integrating intermittent renewable generation with near zero private marginal costs for generating electricity will change market outcomes, but this article emphasizes that this integration does not change the fundamental economic principles behind market design. Market designs still need to adequately price scarcity and all network constraints and services. Such pricing is required to deliver investment incentives for the right technologies to locate at the right locations to efficiently maintain a stable and reliable electrical network.

Original language	English
Pages (from-to)	1-8
Journal	Electricity Journal
Volume	33
Issue number	9
DOIs	https://doi.org/10.1016/j.tej.2020.106847
Publication status	Published - 2020

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10.1016/j.tej.2020.106847

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title = "Designing electricity markets for high penetrations of zero or low marginal cost intermittent energy sources",

abstract = "Integrating intermittent renewable generation with near zero private marginal costs for generating electricity will change market outcomes, but this article emphasizes that this integration does not change the fundamental economic principles behind market design. Market designs still need to adequately price scarcity and all network constraints and services. Such pricing is required to deliver investment incentives for the right technologies to locate at the right locations to efficiently maintain a stable and reliable electrical network.",

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AU - Shanker, Akshay

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AB - Integrating intermittent renewable generation with near zero private marginal costs for generating electricity will change market outcomes, but this article emphasizes that this integration does not change the fundamental economic principles behind market design. Market designs still need to adequately price scarcity and all network constraints and services. Such pricing is required to deliver investment incentives for the right technologies to locate at the right locations to efficiently maintain a stable and reliable electrical network.

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DO - 10.1016/j.tej.2020.106847

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EP - 8

JO - Electricity Journal

JF - Electricity Journal

SN - 1040-6190

IS - 9

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Designing electricity markets for high penetrations of zero or low marginal cost intermittent energy sources

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