scholarly journals Self-Reinforcing Electricity Price Dynamics under the Variable Market Premium Scheme

Energies ◽  
2020 ◽  
Vol 13 (20) ◽  
pp. 5350
Author(s):  
Ulrich J. Frey ◽  
Martin Klein ◽  
Kristina Nienhaus ◽  
Christoph Schimeczek
Keyword(s):  
Renewable Energy ◽  
Power Plants ◽  
World Wide ◽  
Price Setting ◽  
Agent Based ◽  
Design Flaw ◽  
Downward Spiral ◽  
Market Premium ◽  
Opening Up ◽  
High Share

We report a potential self-reinforcing design flaw in the variable market premium scheme that occurs if variable renewable energy power plants receiving a premium become price-setting in the market. A high share of renewable energy is a goal of many countries on their transformation path to a sustainable future. Accordingly, policies like feed-in tariffs have been in place for many years in many countries to support investment. To foster market alignment, variable market premia have been introduced in at least 12 European countries and a further dozen additional countries world-wide. We demonstrate both with a mathematical model and different scenarios of an agent-based simulation that the combination of variable premia and a high share of hours in which renewables are price-setting may lead to a self-reinforcing downward spiral of prices if unchecked. This is caused by the market premium opening up the bidding space towards negative prices. We discuss possible objections and countermeasures and evaluate the severity of this market design flaw.

scholarly journals Analyzing Trade in Continuous Intra-Day Electricity Market: An Agent-Based Modeling Approach

Energies ◽  
2021 ◽  
Vol 14 (13) ◽  
pp. 3860
Author(s):  
Priyanka Shinde ◽  
Ioannis Boukas ◽  
David Radu ◽  
Miguel Manuel de Manuel de Villena ◽  
Mikael Amelin
Keyword(s):  
Renewable Energy ◽  
Electricity Market ◽  
Power Plants ◽  
Renewable Energy Sources ◽  
Thermal Power ◽  
Agent Based Modeling ◽  
Market Liquidity ◽  
Energy Sources ◽  
Modeling Framework ◽  
Agent Based

In recent years, the vast penetration of renewable energy sources has introduced a large degree of uncertainty into the power system, thus leading to increased trading activity in the continuous intra-day electricity market. In this paper, we propose an agent-based modeling framework to analyze the behavior and the interactions between renewable energy sources, consumers and thermal power plants in the European Continuous Intra-day (CID) market. Additionally, we propose a novel adaptive trading strategy that can be used by the agents that participate in CID market. The agents learn how to adapt their behavior according to the arrival of new information and how to react to changing market conditions by updating their willingness to trade. A comparative analysis was performed to study the behavior of agents when they adopt the proposed strategy as opposed to other benchmark strategies. The effects of unexpected outages and information asymmetry on the market evolution and the market liquidity were also investigated.

scholarly journals A SWOT Analysis Approach for a Sustainable Transition to Renewable Energy in South Africa

2021 ◽  
Vol 13 (7) ◽  
pp. 3933
Author(s):  
Solomon E. Uhunamure ◽  
Karabo Shale
Keyword(s):  
Climate Change ◽  
South Africa ◽  
Renewable Energy ◽  
Regional Integration ◽  
Power Plants ◽  
Swot Analysis ◽  
Climatic Conditions ◽  
Policy Implications ◽  
Analysis Approach ◽  
Renewable Energy Resources

South Africa is been faced with erratic power supply, resulting in persistent load shedding due to ageing in most of its coal-fired power plants. Associated with generating electricity from fossil fuel are environmental consequences such as greenhouse emissions and climate change. On the other hand, the country is endowed with abundant renewable energy resources that can potentially ameliorate its energy needs. This article explores the viability of renewable energy using the strengths, weaknesses, opportunities and threats (SWOT) analysis approach on the key renewable potential in the country. The result indicates that geographic position, political and economic stability and policy implementation are some of the strengths. However, Government bureaucratic processes, level of awareness and high investment cost are some of the weaknesses. Several opportunities favour switching to renewable energy, and these include regional integration, global awareness on climate change and the continuous electricity demand. Some threats hindering the renewable energy sector in the country include land ownership, corruption and erratic climatic conditions. Some policy implications are suggested based on the findings of the study.

scholarly journals Portfolio optimization of power plants by using renewable energy in Iran

2020 ◽  
Author(s):  
Seyedeh Asra Ahmadi ◽  
Seyed Mojtaba Mirlohi ◽  
Mohammad Hossein Ahmadi ◽  
Majid Ameri
Keyword(s):  
Renewable Energy ◽  
Portfolio Optimization ◽  
Energy Supply ◽  
Power Plants ◽  
Renewable Energy Sources ◽  
Modern Society ◽  
Sustainable Growth ◽  
Electricity Sector ◽  
Capital Costs

Abstract Lack of investment in the electricity sector has created a huge bottleneck in the continuous flow of energy in the market, and this will create many problems for the sustainable growth and development of modern society. The main reason for this lack of investment is the investment risk in the electricity sector. One way to reduce portfolio risk is to diversify it. This study applies the concept of portfolio optimization to demonstrate the potential for greater use of renewable energy, which reduces the risk of investing in the electricity sector. Besides, it shows that investing in renewable energies can offset the risk associated with the total input costs. These costs stem from the volatility of associated prices, including fossil fuel, capital costs, maintenance, operation and environmental costs. This case study shows that Iran can theoretically supply ~33% of its electricity demand from renewable energy sources compared to its current 15% share. This case study confirms this finding and predicts that Iran, while reducing the risk of investing in electricity supply, can achieve a renewable energy supply of ~9% with an average increase in supply costs. Sensitivity analysis further shows that with a 10% change in input cost factors, the percentage of renewable energy supply is only partially affected, but basket costs change according to the scenario of 5–32%. Finally, suggestions are made that minimize risk rather than cost, which will bring about an increase in renewable energy supply.

scholarly journals Regional Diversification of Potential, Production and Efficiency of Use of Biogas and Biomass in Poland

Energies ◽  
2021 ◽  
Vol 14 (3) ◽  
pp. 742
Author(s):  
Grzegorz Ślusarz ◽  
Barbara Gołębiewska ◽  
Marek Cierpiał-Wolan ◽  
Jarosław Gołębiewski ◽  
Dariusz Twaróg ◽  
...  
Keyword(s):  
Renewable Energy ◽  
Biomass Production ◽  
Biogas Production ◽  
Renewable Energy Sources ◽  
Energy Sources ◽  
Efficiency Frontier ◽  
The European Union ◽  
Production Potential ◽  
Solid Biomass ◽  
High Share

Energy obtained from renewable sources is an important element of the sustainable development strategy of the European Union and its member states. The aim of this research is, therefore, to assess the potential and use of renewable energy sources and their effectiveness from the regional perspective in Poland. The research covered the years 2012 and 2018. The diversification of production and potential of renewable energy sources was defined on the basis of biogas and biomass. Calculations made using the data envelopment analysis (DEA) method showed that, in 2012, only three voivodeships achieved the highest efficiency in terms of the use of biogas and biomass resources; in 2018, this number increased to four. Comparing the effective units in 2012 and 2018, it can be seen that their efficiency frontier moved upwards by 56% in terms of biogas and 21% in terms of to biomass. Despite a large relative increase in the production of heat from biogas by 99% compared to the production of heat from biomass by 38%, the efficiency frontier for biogas did not change considerably. It was found that the resources of solid biomass are used far more intensively than the resources of biogas. However, in the case of biogas, a significant increase in the utilization of the production potential was observed: from 3.3% in 2012 to 6.4% in 2018, whereas in the same years, the utilization of solid biomass production potential remained at the same level (15.3% in 2012, 15.4% in 2018). It was also observed that, at the level of voivodeships, the utilization of biogas and biomass production potential is negatively correlated with the size of this potential. The combined potential of solid biomass and biogas can cover the demand of each of the studied regions in Poland in terms of thermal energy. The coverage ranges from 104% to 1402%. The results show that when comparing biomass and biogas, the production of both electricity and heat was dominated by solid biomass. Its high share occurred especially in voivodeships characterized by a high share of forest area and a low potential for biogas production (Lubuskie Voivodeship, Zachodniopomorskie Voivodeship).

Aggregation Method of Multi-Criteria Evaluations in New and Renewable Energy Power Plants: A Case Study

2009 ◽  
Author(s):  
Jiang-Jiang Wang ◽  
Chun-Fa Zhang ◽  
You-Yin Jing
Keyword(s):  
Renewable Energy ◽  
Nuclear Power ◽  
Power Plants ◽  
Economic Cost ◽  
Evaluation Result ◽  
Singular Value Decomposition Method ◽  
Multi Criteria Evaluation ◽  
Potential Development ◽  
Value Decomposition ◽  
Grey Relational

The multi-criteria evaluation methods of complex systems such as the new and renewable technologies gradually spring up. The feasibility of energy power plants is evaluated and considered from many aspects, such as technology, economic cost and environment protection. However, the energy power plants’ ranking results in different methods or different weighs can be different. Accordingly, the sequencing results should be aggregated and analyzed, and then an integrated result should be given out. Aiming to get the specific evaluation result, 10 kinds of energy power plants, such as hydro, nuclear, wind, geothermal and biomass plants are considered and evaluated. The singular value decomposition method is employed to aggregate the evaluation results in grey relational method, PROMENTHEE II method, and other results from literature. The integrated evaluation result shows that the hydro and nuclear power plants are located on the first place and the renewable energy power plants have great potential development in the future.

Power Cycles of Generation III and III+ Nuclear Power Plants

2014 ◽  
Author(s):  
Alexey Dragunov ◽  
Eugene Saltanov ◽  
Igor Pioro ◽  
Pavel Kirillov ◽  
Romney Duffey
Keyword(s):  
Renewable Energy ◽  
Natural Gas ◽  
Thermal Efficiency ◽  
Nuclear Power ◽  
Power Plants ◽  
Renewable Energy Sources ◽  
Thermal Power ◽  
Electrical Energy ◽  
Energy Sources ◽  
Thermal Power Plants

It is well known that the electrical-power generation is the key factor for advances in any other industries, agriculture and level of living. In general, electrical energy can be generated by: 1) non-renewable-energy sources such as coal, natural gas, oil, and nuclear; and 2) renewable-energy sources such as hydro, wind, solar, biomass, geothermal and marine. However, the main sources for electrical-energy generation are: 1) thermal - primary coal and secondary natural gas; 2) “large” hydro and 3) nuclear. The rest of the energy sources might have visible impact just in some countries. Modern advanced thermal power plants have reached very high thermal efficiencies (55–62%). In spite of that they are still the largest emitters of carbon dioxide into atmosphere. Due to that, reliable non-fossil-fuel energy generation, such as nuclear power, becomes more and more attractive. However, current Nuclear Power Plants (NPPs) are way behind by thermal efficiency (30–42%) compared to that of advanced thermal power plants. Therefore, it is important to consider various ways to enhance thermal efficiency of NPPs. The paper presents comparison of thermodynamic cycles and layouts of modern NPPs and discusses ways to improve their thermal efficiencies.

Annual Yield Analysis of Solar Tower Power Plants With GREENIUS

2011 ◽  
Vol 133 (3) ◽  
Author(s):  
Jürgen Dersch ◽  
Peter Schwarzbözl ◽  
Timo Richert
Keyword(s):  
Renewable Energy ◽  
Power Plants ◽  
Software Tool ◽  
Parabolic Trough ◽  
Concentrating Solar Power ◽  
Solar Field ◽  
Performance Calculation ◽  
Design Power ◽  
Energy Plants ◽  
Renewable Energy Plants

An existing software tool for annual performance calculation of concentrating solar power and other renewable energy plants has been extended to enable the simulation of solar tower power plants. The methodology used is shown and a demonstrative example of a 50 MWe tower plant in southern Spain is given. The influence of design power and latitude on solar field layout is discussed. Furthermore, a comparison of the tower plant with a 50 MWe parabolic trough and a Linear Fresnel plant at the same site is given.

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