Electricity markets around the world were designed and implemented in the late 90’s when no significant amount the renewable non-dispatchable production (wind- or solar-based) was in operation. Renewable non-dispatchable producers are different from conventional ones because their production levels are both variable and uncertain. Currently, such producers are increasingly entering the electric energy sector and participating in electricity markets. To efficiently integrate them, the questions below regarding market design and organization need to be answered:
- Which is the most appropriate time framework to clear short-term electricity markets? Is it a day-ahead horizon as today, or a shorter one?
- Should the algorithms to clear such markets be deterministic or stochastic? How should prices be derived?
- How much reserves should be scheduled to cope with the variable and uncertain nature of renewable non-dispatchable producers? Who should pay for such reserves?
- How the transmission infrastructure should be expanded and operated to avoid bottlenecks that hider the integration of renewable non-dispatchable resources?
The presentation will address the questions above.