The DSR Scheme in the Capacity Market of Industrial Enterprises in Poland—Participation Determinants

Jeżyna, Bartosz; Lis, Marcin; Mesjasz-Lech, Agata

doi:10.3390/en13205462

Cited by 3 publications

(3 citation statements)

References 24 publications

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“…Komorowska (2021) presented the impact of the capacity market on the decarbonization process in Poland until 2040 [18]. Je żyna et al (2020) questioned 50 companies about their expectations and plans related to the participation in capacity marked compared to other DRS schemes [31].…”

Section: Literature Reviewmentioning

confidence: 99%

Capacity Market and (the Lack of) New Investments: Evidence from Poland

et al. 2021

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Capacity remuneration mechanisms operate in many European countries. In 2018, Poland implemented a centralized capacity market to ensure appropriate funding for the existing and new power generation units to improve long-term energy security. One of the declarations made while the mechanism was deployed was its beneficial influence on incentives for investments in new units. In this context, this paper aims to analyze the effects of the capacity mechanism adopted for investments in new power generation units that may be financed under the capacity market mechanism in Poland. The analysis is conducted for four types of capacity market units, the existing, refurbishing, planned, and demand-side response types, and includes the final results of capacity auctions. The results prove that the primary beneficiaries of the capacity market in Poland have been the existing units (including the refurbishing ones) responsible for more than 80% of capacity obligation volumes contracted for 2021–2025. Moreover, during the implementation of the capacity market in Poland, the planned units that signed long-term capacity contracts with a total share of 12% of the whole market were already at the advanced phases of construction, and the investment decisions were made long before the implementation of the capacity market mechanism. Therefore, they were not associated with the financial support from the capacity market. The study indicates that the capacity market did not bring incentives for investments in new power generation units in the investigated period.

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Section: Literature Reviewmentioning

confidence: 99%

Capacity Market and (the Lack of) New Investments: Evidence from Poland

et al. 2021

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“…Such programs, including services of interruptible loads organised by Polish transmission system operator (TSO), resulted in the load reduction of 500 MW in 2018 [16]. What is more, the new measure allowing introduction of demand response services in the capacity market is currently introduced in Poland, which is intended to operate since 2021 and will allow for participation in DSR of many more industrial enterprises [17,18].…”

Section: Introductionmentioning

confidence: 99%

Price-Based Demand Side Response Programs and Their Effectiveness on the Example of TOU Electricity Tariff for Residential Consumers

2021

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Demand side response is becoming an increasingly significant issue for reliable power systems’ operation. Therefore, it is desirable to ensure high effectiveness of such programs, including electricity tariffs. The purpose of the study is developing a method for analysing electricity tariff’s effectiveness in terms of demand side response purposes based on statistical data concerning tariffs’ use by the consumers and price elasticity of their electricity demand. A case-study analysis is presented for residential electricity consumers, shifting the settlement and consequently the profile of electricity use from a flat to a time-of-use tariff, based on the comparison of the considered tariff groups. Additionally, a correlation analysis is suggested to verify tariffs’ influence of the power system’s peak load based on residential electricity tariffs in Poland. The presented analysis proves that large residential consumers aggregated by tariff incentives may have a significant impact on the power system’s load and this impact changes substantially for particular hours of a day or season. Such efficiency assessment may be used by both energy suppliers to optimize their market purchases and by distribution system operators in order to ensure adequate generation during peak load periods.

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“…The generating units covered by this are required to be ready to supply power and to deliver it to the system during a period of threatened shortage, with adequate remuneration. The capacity market is closely related to the development of demand-side response (DSR) services, which consist in the temporary reduction in electricity consumption by consumers or the postponement of its consumption (demand-side management) at the request of the TSO in exchange for remuneration [39].…”

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The Effectiveness of Energy Cooperatives Operating on the Capacity Market

2021

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The European Green Deal aims to make Europe the world’s first climate-neutral continent by 2050 by shifting to a clean circular economy, combating biodiversity loss and reducing pollution levels. In Poland, whose economy invariably remains one of the most dependent on coal consumption in Europe, institutional responses to the above EU objectives have taken the shape of energy cooperatives aimed at filling the gaps in the development of the civic dimension of energy on a local scale and the use of potential renewable energy sources in rural areas, including in relation to the agricultural sector. This article is a continuation of the authors’ previous research work, which has so far focused on the analysis of the development of profitability of Polish institutions that fit into the European idea of a “local energy community”, which includes energy cooperatives. In this research paper, they present the results of subsequent research work and analyses performed on the basis of it which, on the one hand, complement the previously developed optimization model with variables concerning actual energy storage and, on the other hand, analyze the profitability of the operation of energy cooperatives in the conditions of the “capacity market”. The latter was actually introduced in Poland at the beginning of 2021. The research took account of the characteristics of energy producers and consumers in rural areas of Poland, the legally defined rules for the operation of the capacity market and the institutional conditions for the operation of energy cooperatives that can use the potential of energy storage. A dedicated mathematical model in mixed integer programming technology was used, enriched with respect to previous research, making it possible to optimize the operation of energy cooperative with the use of actual energy storage (batteries). Conclusions from the research and simulation show that the installation of energy storage only partially minimizes the volume of energy drawn from the grid in periods when fees related to the capacity market are in force (which should be avoided due to higher costs for consumers). The analysis also indicates that a key challenge is the proper parameterization of energy storage.

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The DSR Scheme in the Capacity Market of Industrial Enterprises in Poland—Participation Determinants

Cited by 3 publications

References 24 publications

Capacity Market and (the Lack of) New Investments: Evidence from Poland

Capacity Market and (the Lack of) New Investments: Evidence from Poland

Price-Based Demand Side Response Programs and Their Effectiveness on the Example of TOU Electricity Tariff for Residential Consumers

The Effectiveness of Energy Cooperatives Operating on the Capacity Market

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