TY - GEN
T1 - Coherency of the European resource adequacy framework
AU - Gonzato, Sebastian
AU - De Paepe, Michiel
AU - Bruninx, Kenneth
AU - Delarue, Erik
N1 - Green Open Access added to TU Delft Institutional Repository ‘You share, we take care!’ – Taverne project https://www.openaccess.nl/en/you-share-we-take-care Otherwise as indicated in the copyright section: the publisher is the copyright holder of this work and the author uses the Dutch legislation to make this work public.
PY - 2023
Y1 - 2023
N2 - The European Union (EU)'s resource adequacy framework consists of the reliability standard calculation, adequacy assessments and capacity remuneration mechanisms, three pillars which should conspire to deliver a realised adequacy in liberalised markets which is close to that which would be delivered by a central planner minimising total system costs. However, this framework is vulnerable to inconsistencies in the parameters used in each of the three pillars, making the framework internally incoherent and potentially increases system costs. We illustrate and discuss how an inconsistent choice of storage operation can lead to a sub-optimal level of adequacy. However, a consistent storage operation challenges the stated purpose of adequacy assessments in the EU which is to predict adequacy resulting from market operations.
AB - The European Union (EU)'s resource adequacy framework consists of the reliability standard calculation, adequacy assessments and capacity remuneration mechanisms, three pillars which should conspire to deliver a realised adequacy in liberalised markets which is close to that which would be delivered by a central planner minimising total system costs. However, this framework is vulnerable to inconsistencies in the parameters used in each of the three pillars, making the framework internally incoherent and potentially increases system costs. We illustrate and discuss how an inconsistent choice of storage operation can lead to a sub-optimal level of adequacy. However, a consistent storage operation challenges the stated purpose of adequacy assessments in the EU which is to predict adequacy resulting from market operations.
KW - adequacy assessments
KW - capacity remuneration mechanisms
KW - electricity regulation
KW - electricity storage
KW - reliability standard
KW - resource adequacy
UR - http://www.scopus.com/inward/record.url?scp=85165230502&partnerID=8YFLogxK
U2 - 10.1109/EEM58374.2023.10161837
DO - 10.1109/EEM58374.2023.10161837
M3 - Conference contribution
AN - SCOPUS:85165230502
T3 - International Conference on the European Energy Market, EEM
BT - 2023 19th International Conference on the European Energy Market, EEM 2023
PB - IEEE
T2 - 19th International Conference on the European Energy Market, EEM 2023
Y2 - 6 June 2023 through 8 June 2023
ER -