Innovative Electricity Market Designs to Support a Transition to (Near) 100% Renewable Power System: First Results from H2020 TradeRES Project

Ana Estanqueiro*, Goran Strbac, Nikolaos Chrysanthopoulos, Gabriel Santos, Silke Johanndeiter, Hugo Algarvio, Helleik Syse, Evelyn Sperber, Ni Wang, Ingrid Jimenez, Dawei Qiu, Zita Vale, Kristina Nienhaus, Johannes Kochems, Christoph Schimeczek, Jos Sijm, Laurens de Vries, Fernando Lopes, António Couto

*Corresponding author for this work

Research output: Contribution to journalConference articleScientificpeer-review


Developing innovative electricity market designs to facilitate a sustainable transition to (near) 100% renewable power systems while meeting societal needs is a crucial and actual topic of research. This article presents preliminary key findings from the H2020 European project TradeRES, addressing this critical topic. The project uses agent-based and optimization models to effectively capture the behaviour of different market players, and to analyse the current and future power system energy mixes of selected European case studies with different physical and spatial scales from: i) local energy communities and local energy markets (LEMs); ii) national/regional - the Netherlands, Germany, and Iberia (Portugal and Spain); and iii) pan-European energy markets. The first results on LEMs indicate a substantial economic benefit for participants and enhanced revenue streams for distributed energy resources, able to i) incentivise further decentralised investments; ii) promote the growth of variable renewable energy systems (vRES) and iii) increase flexibility at the local level. The outcomes are sensitive to the tariffs’ structure, while the retail sector competitiveness was identified as a critical parameter affecting its efficiency. For the pan-European and national/regional case studies, the first set of simulations had consistent outcomes, namely, by pointing out current design of energy-only markets to be insufficient to incentivize the high levels of vRES foreseen in Europe. Different support schemes (e.g., fixed market premia, contract for differences) were tested and results suggest they may play a relevant role in effectively covering the cost of vRES in a market environment.

Original languageEnglish
Pages (from-to)274-281
Number of pages8
JournalIET Conference Proceedings
Issue number20
Publication statusPublished - 2023
Event22nd Wind and Solar Integration Workshop, WIW 2023 - Copenhagen, Denmark
Duration: 26 Sept 202328 Sept 2023

Bibliographical note

Green Open Access added to TU Delft Institutional Repository ‘You share, we take care!’ – Taverne project 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.


  • electricity market
  • vres large scale integration
  • near 100% res power systems


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