Renewable generation versus demand-side management. A comparison for the Spanish market

Fernández, Juan Manuel Roldán; Payán, Manuel Burgos; Santos, J.R.; García, Ángel Luis Trigo

doi:10.1016/j.enpol.2016.06.014

Cited by 32 publications

(12 citation statements)

References 9 publications

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“…This work aims to quantify and compare the main effects on the Spanish/Iberian market. Thus, for each new scenario analysed, new hourly curves of generation and demand are developed, in a three-step sequence [13], [14]:…”

Section: Methodsmentioning

confidence: 99%

“…Finally, the integration of renewable production and demand-side management, are compared in [14] for the case of Spain for the period 2008-2014. The results of that work showed that demand-side management can be favourable compared with renewables in terms of cost of the energy traded in the market and environmental sustainability.…”

Section: Renewable Generation and Load-shifting: A Short Reviewmentioning

confidence: 99%

“…Consumers that apply for load-shifting programs expect to save in their electricity energy bills, due to the difference between the energy price at peak and off-peak hours [5], [7]- [10], [13], [14]. Nevertheless, when an important number of consumers shift an amount of energy from a peak hour to an off-peak hour, there is a resulting decrease in the price of the peak hour and an increase in the price of the off-peak hour, as can be observed in Fig.…”

Section: Load-shiftingmentioning

confidence: 99%

See 2 more Smart Citations

The Merit-Order Effect of Load-Shifting: An Estimate for the Spanish Market

Roldán-Fernández

Payán

Santos

2020

Environmental and Climate Technologies

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AbstractRenewable producers can offer selling bids with very low marginal cost since they are not obliged to include on any cost related to the use of energy from the wind or sun. Accordingly, when the Market Operator integrates a renewable bid in the merit-order generation curve, all the generators based on conventional technologies, with higher marginal cost due to the cost of fuels, are displaced to the right. The right-shifting of the merit-order generation curve leads to a lower clearing price, a small increment of the traded energy (almost inelastic demand curve), and a reduction of the total cost of the energy traded in the wholesale market. This is the key mechanism of the well-known merit-order effect of renewables. Load-shifting (demand-side management) plans are expected to yield a reduction of the cost of the traded energy for the customers, since the cost-saving due to the energy eschewed at peak hours would be greater than the extra cost due to the increased demand at off-peak hours. This work will show that the main effects of load-shifting on the market are qualitatively similar to that of renewables, which exemplify the existence a “merit-order effect of load-shifting”. To analyse the characteristics of the merit-order effect of load-shifting, a simplified model has been developed, based on the displacement of the generation and demand curves. A set of scenarios has been generated in order to quantify the main effects on the Spanish/Iberian market for 2015.

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Section: Methodsmentioning

confidence: 99%

Section: Renewable Generation and Load-shifting: A Short Reviewmentioning

confidence: 99%

Section: Load-shiftingmentioning

confidence: 99%

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The Merit-Order Effect of Load-Shifting: An Estimate for the Spanish Market

Roldán-Fernández

Payán

Santos

2020

Environmental and Climate Technologies

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“…The underlying idea of this extra-market policy is that the more renewable energy is integrated into the market, the lower the wholesale price of electricity becomes in the market, since the cheaper generators of renewables will replace the more expensive conventional generators which would otherwise be the marginal units. This is the well-known merit-order effect of renewables [15][16][17]. As long as the premium for renewables does not exceed the price reduction in the market, then consumers are not overburdened in their bills [18].…”

Section: Cross-border Interconnection Of Marketsmentioning

confidence: 95%

Cross-Border Energy Exchange and Renewable Premiums: The Case of the Iberian System

Roldán-Fernández

Gómez-Quiles

Merre³

et al. 2018

Energies

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In 2002, the European Union set a target of 10% electricity interconnection capacity for 2020: a target that has been further extended to 15% by 2030. Cross-border interconnection of regional/national electricity systems will allow the EU to enhance its security of supply and to integrate more renewables into energy markets. Although the EU has a common renewable directive, every Member State has its own renewable support policy. For the case of Spain, consumers pay the renewable premium in their electricity bills; however, consumers would not be overburdened if premiums were counter-balanced with the energy-cost reduction due to the merit-order effect of renewables. When two markets are interconnected, the energy exchange through the interconnection yields certain expected rent transfers due to the market rules. However, this exchange is also accompanied by other unforeseen rent transfers related to the regional/national policies on renewables. To the authors’ knowledge, the identification and quantification of these indirect rent transfers has not been previously addressed. This paper analyses and quantifies how the premiums on regional/national renewables are distributed between neighbouring countries through cross-border exchanges. The analysis focuses on the Iberian/Spanish system and its neighbours, although the methodology could be extended to other systems. To this end, data on the market and premiums has been considered, as well as the exchanges between France, Spain, Portugal, and Morocco, for the years 2015–2017. The main finding of this work is that the Spanish system, due to the lack of a coordinated/harmonized renewable premium policy, has been “importing” about 40 M€/year of renewable premium from France and 17 M€/year from Portugal while “exporting” about 66 M€/year towards the Moroccan systems.

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“…High energy demand during peak hours Systematic literature review [35,[46][47][48] Peak energy hours Systematic literature review [8,46,49] Adequacy to the billing measurement system (SMF) Gray literature [39,50] Customer Insight Gray literature [51] Financial Initial Investment Systematic literature review [48,52] Contractual and financial customization Gray literature [51] Rate change in ACR Gray literature [51,53] External Environment…”

Section: Internal Environmentmentioning

confidence: 99%

Determining Factors and Scenarios of Influence on Consumer Migration from the Regulated Market to the Deregulated Electricity Market

et al. 2020

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Due to the constant evolution of the electricity markets around the world, new possibilities for contracting electricity are emerging. In Brazil, there are two models available to the consumer: the regulated contracting environment and the free contracting environment. Because of these possibilities for contracting electricity, it is important that consumers know how to migrate from the regulated to the free environment when it is an advantage. This study was conducted following the premises of three techniques: systematic literature review, gray literature review, and expert panel. The following question was asked: What are the determining factors to be considered by the consumer at the moment decision to migrate from the regulated electricity market to the free market? In total, 7 factors were identified and discussed in the literature review. The experts who participated in the study pointed out 3 influential scenarios in this decision making to migrate. The main contribution of this study is to provide the consumer with subsidies for decision making, given the determining factors to be taken into account when deciding on migration or not. In addition, the study contributed to the sector through a comprehensive discussion about the scenarios faced by consumers and how they can influence decision making.

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Renewable generation versus demand-side management. A comparison for the Spanish market

Cited by 32 publications

References 9 publications

The Merit-Order Effect of Load-Shifting: An Estimate for the Spanish Market

The Merit-Order Effect of Load-Shifting: An Estimate for the Spanish Market

Cross-Border Energy Exchange and Renewable Premiums: The Case of the Iberian System

Determining Factors and Scenarios of Influence on Consumer Migration from the Regulated Market to the Deregulated Electricity Market

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