STATUS AND IMPACT OF MARKET
REFORM POLICY ON INVESTMENTS: CASE EXAMPLES EU, USA AND AUSTRALIA

 
market reform policy status and impact

PowerGenEurope_bestpaper

The strong increase of intermittent renewable energy sources in combination with ”peakier” demand profiles in developed economies, have resulted in much more volatile Net Load that has to be balanced with flexible resources both from the production side (flexible power generation) as well as on the demand side (Demand Side Response, DSR).
 
Policy makers have over the past years considered how electricity market design can be adjusted to provide market based incentives for flexibility. This paper takes closer look at the German, SPP, ERCOT and NEM markets where an updated Energy Only Market type of set-up was implemented as well as the UK where Capacity Mechanism (CM) was implemented, and investigates whether these market arrangements lead to the desired outcome.

Furthermore, this paper is intended to serve as discussion material on reform policy options and market mechanisms to incentivise investments in flexible generation for renewable integration and the total system optimization that can be achieved with the right combination of capabilities in power system.



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Melle-Kruisdijk - Contact

  Melle Kruisdijk
   Vice President Europe
   Wärtsilä Energy Solutions
   
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