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

Gordon W. Leslie; David I. Stern; Akshay Shanker; Michael T. 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 I. Stern, Akshay Shanker, Michael T. Hogan

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

21 Citations (Scopus)

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
Article number	106847
Journal	Electricity Journal
Volume	33
Issue number	9
DOIs	https://doi.org/10.1016/j.tej.2020.106847
Publication status	Published - Nov 2020

Access to Document

10.1016/j.tej.2020.106847

Cite this

@article{4c17fc638a594e5bb6105926ba6006ab,

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.",

keywords = "Electricity market design, Locational marginal pricing, Opportunity cost, Renewable energy transition, Storage, Wholesale electricity markets",

author = "Leslie, {Gordon W.} and Stern, {David I.} and Akshay Shanker and Hogan, {Michael T.}",

note = "Publisher Copyright: {\textcopyright} 2020 Elsevier Inc.",

year = "2020",

month = nov,

doi = "10.1016/j.tej.2020.106847",

language = "English",

volume = "33",

journal = "Electricity Journal",

issn = "1040-6190",

publisher = "Elsevier Inc.",

number = "9",

}

TY - JOUR

T1 - Designing electricity markets for high penetrations of zero or low marginal cost intermittent energy sources

AU - Leslie, Gordon W.

AU - Stern, David I.

AU - Shanker, Akshay

AU - Hogan, Michael T.

PY - 2020/11

Y1 - 2020/11

N2 - 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.

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.

KW - Electricity market design

KW - Locational marginal pricing

KW - Opportunity cost

KW - Renewable energy transition

KW - Storage

KW - Wholesale electricity markets

UR - http://www.scopus.com/inward/record.url?scp=85090601348&partnerID=8YFLogxK

U2 - 10.1016/j.tej.2020.106847

DO - 10.1016/j.tej.2020.106847

M3 - Article

SN - 1040-6190

VL - 33

JO - Electricity Journal

JF - Electricity Journal

IS - 9

M1 - 106847

ER -

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

Abstract

Access to Document

Other files and links

Fingerprint

Cite this