TY - JOUR
T1 - Renewable energy sources and the cycles in deregulated electricity markets
AU - Arango-Aramburo, Santiago
AU - Bernal-García, Sebastián
AU - Larsen, Erik R.
N1 - Funding Information:
We would like to thank Universidad Nacional de Colombia and the Instituto Tecnol?gico Metropolitano for its financial support (Project P17222 ?Experimental Study of the stabilizing properties of forward electricity markets?). This work was supported by the project ?Strategy for the transformation of the Colombian Energy sector in the 2030 horizon? financed in the call 778 of Minciencias Ecosistema Cient?fico. Contract number FP44842-210-2018//Este art?culo se ha desarrollado en el marco del Proyecto ?Estrategia de transformaci?n del sector energ?tico Colombiano en el horizonte de 2030? financiado en la convocatoria 778 de Minciencias Ecosistema Cient?fico. Contrato FP44842-210-2018.
Funding Information:
We would like to thank Universidad Nacional de Colombia and the Instituto Tecnológico Metropolitano for its financial support (Project P17222 “Experimental Study of the stabilizing properties of forward electricity markets”). This work was supported by the project “Strategy for the transformation of the Colombian Energy sector in the 2030 horizon” financed in the call 778 of Minciencias Ecosistema Científico . Contract number FP44842-210-2018//Este artículo se ha desarrollado en el marco del Proyecto “Estrategia de transformación del sector energético Colombiano en el horizonte de 2030” financiado en la convocatoria 778 de Minciencias Ecosistema Científico. Contrato FP44842-210-2018.
Publisher Copyright:
© 2021 Elsevier Ltd
Copyright:
Copyright 2021 Elsevier B.V., All rights reserved.
PY - 2021/5
Y1 - 2021/5
N2 - After countries began to deregulate electricity markets there have been indications that there might be cycles in generation capacity. This has been shown both in simulation models, experiments, and in empirical data. These cycles are caused by the combination of several different factors. The most influential of these factors are: long construction delays, long lifetime of installed capacity and the limited transparency in the industry with regards to future investments, capacity under construction, and the time it takes installed capacity to be retired. The introduction of renewable generation changes two of these factors, namely, the capacity under construction is significantly shorter although there is more uncertainty around the capacity under construction because of the often distributed nature of new generation. Using a simulation model, this paper addresses the effect of the influence of renewable generation on the formation of generation cycles. The results of the study show that there is an effect of renewables on shorter the cycles. The introduction of renewable generation has the potential to impact the formation of cycles; however, it does nothing to increase transparency with respect to capacity, which is planned, under-construction, or about to be retired.
AB - After countries began to deregulate electricity markets there have been indications that there might be cycles in generation capacity. This has been shown both in simulation models, experiments, and in empirical data. These cycles are caused by the combination of several different factors. The most influential of these factors are: long construction delays, long lifetime of installed capacity and the limited transparency in the industry with regards to future investments, capacity under construction, and the time it takes installed capacity to be retired. The introduction of renewable generation changes two of these factors, namely, the capacity under construction is significantly shorter although there is more uncertainty around the capacity under construction because of the often distributed nature of new generation. Using a simulation model, this paper addresses the effect of the influence of renewable generation on the formation of generation cycles. The results of the study show that there is an effect of renewables on shorter the cycles. The introduction of renewable generation has the potential to impact the formation of cycles; however, it does nothing to increase transparency with respect to capacity, which is planned, under-construction, or about to be retired.
KW - Capacity cycles
KW - Electricity markets
KW - Renewables
KW - System dynamics
UR - http://www.scopus.com/inward/record.url?scp=85101043957&partnerID=8YFLogxK
U2 - 10.1016/j.energy.2021.120058
DO - 10.1016/j.energy.2021.120058
M3 - Journal article
AN - SCOPUS:85101043957
SN - 0360-5442
VL - 223
JO - Energy
JF - Energy
M1 - 120058
ER -