What May Future Electricity Markets Look Like?

Abstract

Should the organization, design and functioning of electricity markets be taken for granted? Definitely not. While decades of evolution of electricity markets in countries that committed early to restructure their electric power sector made us believe that we may have found the right and future-proof model, the substantially and rapidly evolving context of our power and energy systems is challenging this idea in many ways. Actually, that situation brings both challenges and opportunities. Challenges include accommodation of renewable energy generation, decentralization and support to investment, while opportunities are mainly that advances in technical and social sciences provide us with many more options in terms of future market design. We here take a holistic point of view, by trying to understand where we are coming from with electricity markets and where we may be going. Future electricity markets should be made fit for purpose by considering them as a way to organize and operate a socio-techno-economic system.

Design of a Stochastic Electricity Market Mechanism with a High Proportion of Renewable Energy

“…In view of the transformation of the power generation mode and the change in the power system operation mode, it is urgent to change the original market system or design a new market mechanism [4,5]. The design of the market mechanism needs to emphasize the synergy of new energy, traditional energy, and flexible resources to coordinate the technical characteristics and economic endowments of flexible resources, such as traditional coalfired power generation, hydroelectric power generation, and new energy power generation.…”