The effectiveness of a strategic reserve in the presence of a high portfolio share of renewable energy sources
Authored by Emile J L Chappin, Jorn C Richstein, Vries Laurens J de, Pradyumna C Bhagwat
Date Published: 2016
DOI: 10.1016/j.jup.2016.01.006
Sponsors:
Sustainable Energy Technologies and Strategies (SETS)
Platforms:
AgentSpring
Model Documentation:
UML
Other Narrative
Flow charts
Mathematical description
Model Code URLs:
Model code not found
Abstract
To ensure sufficient investment in electricity generation capacity, mechanisms such as strategic reserves are being considered or already
implemented. We analyze the effectiveness of a strategic reserve in the
presence of a growing portfolio share of renewable energy sources (RES)
with EMLab-Generation,an agent-based electricity market model. A
strategic reserve can stabilize investment, but within limits.
Uncertainty regarding future demand may cause the market to become
instable, potentially leading to periods with very high electricity
prices. In the presence of a large share of variable renewable energy
sources, the reserve design should be adjusted or replaced by an
alternative capacity mechanism. (c) 2016 Elsevier Ltd. All rights
reserved.
Tags
Electricity
Generation
Prices
Capacity mechanisms
Failures