Merit Order Effect Modeling: The Case of the Hellenic Electricity Market

Loumakis, Stelios; Giannini, Eugenia; Maroulis, Z.B.

doi:10.3390/en12203869

Cited by 12 publications

(20 citation statements)

References 21 publications

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“…The fundamental merit order model is utilized on the Greek wholesale electricity market in a study finalized in 2019. The results of the study are used to inform the policy makers in the formation of more effective policies into the future [56].…”

Section: Literature Reviewmentioning

confidence: 99%

Modelling the Potential Impacts of Nuclear Energy and Renewables in the Turkish Energy System

Korkmaz

Önöz

2022

Energies

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With heightening global concerns about the impacts of climate change, the debate around different carbon mitigation options is gaining momentum. A widespread argument is between those for and against utilizing nuclear energy as a low-carbon energy source. This debate is also relevant for Turkey, a country that is set to introduce nuclear energy to its electricity generation mix over the coming years. The purpose of the study is to assess the potential merits and drawbacks of the utilization of nuclear energy in the country versus the increased utilization of renewable energy sources. A fundamental merit order model is used for modeling the Turkish electricity market until 2025 under three scenarios. The comparative effects of renewable energy sources and nuclear energy are evaluated in terms of their impact on electricity generation costs, CO2 emissions and energy security. The results of the study show that the increased utilization of renewable energy has a more effective role in achieving the country’s energy targets in comparison to nuclear energy.

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Section: Literature Reviewmentioning

confidence: 99%

Modelling the Potential Impacts of Nuclear Energy and Renewables in the Turkish Energy System

Korkmaz

Önöz

2022

Energies

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“…The integration of renewables creates economic benefits for consumers when they participate in the day-ahead electricity market. This effect, described in [28][29][30][31], is known as the merit-order effect, and it constitutes a decrease in energy prices when renewables offer their energy at a very low price in a day-ahead electricity market. This work seeks to estimate the impact that offshore energy would have on the day-ahead Iberian electricity market.…”

Section: Introductionmentioning

confidence: 99%

Impact of Spanish Offshore Wind Generation in the Iberian Electricity Market: Potential Savings and Policy Implications

et al. 2021

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The European Union considers that offshore wind power will play a key role in making the EU the first climate-neutral continent by 2050. Currently, the potential of offshore wind energy is still untapped in Spain. Furthermore, the characteristics of the coastline in Spain require floating technology, making it challenging to install wind farms due to their current high cost. This work seeks to quantify the impact that Spanish offshore wind energy would have on the Iberian electricity market. Several offshore wind scenarios are evaluated by combining available information in relation to areas suitable for installing wind farms and wind resource data. The impact on the day-ahead electricity market has been obtained by reproducing the market, including these new offshore wind generation scenarios. The introduction of this renewable energy results in a market cost reduction in what is known as the merit-order effect. According to our estimates, for each MWh of offshore wind energy introduced in the market, there would be a market cost reduction of 45 €. These savings can serve as a reference for regulators to adjust their policy framework to boost floating wind offshore generation.

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“…Therefore, VRE output affects MP during the day in both quantity and distribution form. This circumstance is called the "merit-order effect" (MOE) [4][5][6][7][8][9][10][11][12][13][14][15][16].…”

Section: Introductionmentioning

confidence: 99%

Optimal Variable Renewable Energy Generation Schedules Considering Market Prices and System Operational Constraints

Imcharoenkul¹,

Chaitusaney²

2021

Energies

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The maximization of output from variable renewable energy (VRE) sources considering system operational constraints (SOCs) is a traditional method for maximizing VRE generators’ profits. However, in wholesale electricity markets, VRE participation tends to reduce marginal prices (MP) because of its low marginal costs. This circumstance, called the “merit-order effect” (MOE), reduces the generators’ profits. Thus, the traditional method is possibly no longer the best and only method to maximize the generators’ profits. Moreover, the VRE support schemes also affect MP, making MOE more severe. VRE curtailment can relieve MOE, but VRE output must be decreased, thereby reducing the generators’ profits. This paper proposes a method to find the optimal VRE generation schedules that maximize VRE generators’ profits while considering the trade-off among the VRE output, MP, and SOCs. The method combines the merit-order model and the unit-commitment model solved by the optimization tools in MATLAB. Thailand’s electrical system was the test system. The result shows that VRE generators’ profits from the proposed method are significantly higher than from the traditional method when the system has high wind penetration, and the generators have no support scheme. Curtailing approximately 7–10% of wind output can increase the average MP by 23.6–30%.

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Merit Order Effect Modeling: The Case of the Hellenic Electricity Market

Cited by 12 publications

References 21 publications

Modelling the Potential Impacts of Nuclear Energy and Renewables in the Turkish Energy System

Modelling the Potential Impacts of Nuclear Energy and Renewables in the Turkish Energy System

Impact of Spanish Offshore Wind Generation in the Iberian Electricity Market: Potential Savings and Policy Implications

Optimal Variable Renewable Energy Generation Schedules Considering Market Prices and System Operational Constraints

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