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2448. Assessing market effects of support instruments for renewables: Are they needed and how to design them?
Invited abstract in session MC-9: New Market Designs & Models for 100% Renewable Power Systems, stream Energy Markets.
Monday, 12:30-14:00Room: 10 (building: 116)
Authors (first author is the speaker)
| 1. | Johannes Kochems
|
| Deutsches Zentrum für Luft- und Raumfahrt e. V. (DLR) German Aerospace Center | |
| 2. | Evelyn Sperber
|
| Institute of Networked Energy Systems, German Aerospace Center (DLR) | |
| 3. | Christoph Schimeczek
|
| Institute of Networked Energy Systems, German Aerospace Center | |
| 4. | Kristina Nienhaus
|
| Deutsches Zentrum für Luft- und Raumfahrt e. V. (DLR) German Aerospace Center |
Abstract
Motivation
Future energy systems will be dominated by variable Renewable Energy Sources (vRES). Yet, it is unclear if all vRES investments will recover their costs on an energy only market (EoM) and which market designs could promote necessary investments. Thus. the German case study of the TradeRES project [1] aims to assess vRES remuneration needs and policy options.
Methods
We use AMIRIS [2, 3] to assess (among others) a scenario with ~85% vRES share (S0). We assess a pure EoM and five different support instruments for vRES. These are: a fixed / variable market premium, two-way contracts for difference, capacity premia and a recent proposal from [4] (Financial CfD). All premia are iteratively adjusted so each vRES agent is refinanced. We evaluate cost recovery rates, power market prices, curtailment and other measures of market performance.
Results
The data for Scenario S0 shows that EoM income alone is insufficient, as PV and wind operators cannot fully recover their costs. Market-based cost recovery rates vary depending on the support instrument due to the bidding and dispatch behaviour for vRES, resulting in different prices and market incomes. Our findings also indicate a significant sensitivity to the scenario considered, the degree of model-endogenous flexibility sources as well as backup fuel (hydrogen) prices.
Sources
[1] https://traderes.eu/
[2] doi: 10.21105/joss.05041
[3] https://dlr-ve.gitlab.io/esy/amiris/home/
[4] http://hdl.handle.net/10419
Keywords
- Electricity Markets
- Energy Policy and Planning
- Simulation
Status: accepted
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