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Transition of Renewable Energy Policy: What Energy Markets Can and...
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Transition of Renewable Energy Policy: What Energy Markets Can and Cannot Solve

A special issue of Energies (ISSN 1996-1073). This special issue belongs to the section "C: Energy Economics and Policy".

Deadline for manuscript submissions: closed (15 November 2021) | Viewed by 10922

Special Issue Editors

Dr. László Szabó

E-Mail Website
Guest Editor
Regional Centre for Energy Policy Research, Corvinus University of Budapest, 1093 Budapest, Hungary
Interests: renewable energy policy; energy economics; energy infrastructure; energy modelling; power systems; energy efficiency
Dr. Gabriella Szajkó

E-Mail Website
Guest Editor
Regional Centre for Energy Policy Research, Corvinus University of Budapest, 1093 Budapest, Hungary
Interests: renewable energy; energy economics; climate policy; sustainable energy systems; biomass sustainability; emissions trading; environmental policy

Special Issue Information

Dear Colleagues,

Steeply declining costs of renewable energy technologies and ambitious carbon reduction targets have brought about a dramatic change in the development of renewable energy policies in many countries. Ongoing support schemes move from administratively set to more market-oriented procedures (such as tendering support or access rights), while several renewable energy technologies have become commercially competitive.

As the pioneer era of renewable energy is coming to its end, policies must transform to cope with various new challenges. This Special Issue of Energies is dedicated to analyzing some of the most important challenges.

  • As electricity grid connection opportunities become scarce, how can they be effectively allocated them in the short term, and how can proper incentives be provided for integrative grid adequacy developments in the long term? How can we prepare for more distributed generation and producer–consumers (prosumers)?
  • How can the renewable energy success story of the electricity sector in the heat sector be repeated? And how can technology lock-ins be overcome?
  • How can integrated and secure energy systems and overall cost efficiency be preserved in the ambitious context of the 2030 and 2050 targets?
  • How can the sustainability of renewable-based production be maintained or strengthened, and how can overuse of depletable renewable resources be avoided? For example, land and biomass exploitation for biofuels in heating and electricity?

In this Special Issue of Energies, we invite original manuscripts covering these issues based on quantitative or qualitative analysis covering several countries or multi-country regions.

Dr. László Szabó
Dr. Gabriella Szajkó
Guest Editors

Manuscript Submission Information

Manuscripts should be submitted online at www.mdpi.com by registering and logging in to this website. Once you are registered, click here to go to the submission form. Manuscripts can be submitted until the deadline. All submissions that pass pre-check are peer-reviewed. Accepted papers will be published continuously in the journal (as soon as accepted) and will be listed together on the special issue website. Research articles, review articles as well as short communications are invited. For planned papers, a title and short abstract (about 100 words) can be sent to the Editorial Office for announcement on this website.

Submitted manuscripts should not have been published previously, nor be under consideration for publication elsewhere (except conference proceedings papers). All manuscripts are thoroughly refereed through a single-blind peer-review process. A guide for authors and other relevant information for submission of manuscripts is available on the Instructions for Authors page. Energies is an international peer-reviewed open access semimonthly journal published by MDPI.

Please visit the Instructions for Authors page before submitting a manuscript. The Article Processing Charge (APC) for publication in this open access journal is 2600 CHF (Swiss Francs). Submitted papers should be well formatted and use good English. Authors may use MDPI's English editing service prior to publication or during author revisions.

Keywords

  • renewable energy policy
  • renewable energy support schemes
  • sustainable energy
  • prosumer
  • energy regulation
  • energy modeling

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Published Papers (4 papers)

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Research

18 pages, 4417 KiB  
Article
Greenhouse Gas Abatement in EUROPE—A Scenario-Based, Bottom-Up Analysis Showing the Effect of Deep Emission Mitigation on the European Energy System
by Stephan Kigle, Michael Ebner and Andrej Guminski
Energies 2022, 15(4), 1334; https://doi.org/10.3390/en15041334 - 12 Feb 2022
Cited by 8 | Viewed by 2354
Abstract
Greenhouse gas emissions need to be drastically reduced to mitigate the environmental impacts caused by climate change, and to lead to a transformation of the European energy system. A model landscape consisting of four final energy consumption sector models with high spatial (NUTS-3) [...] Read more.
Greenhouse gas emissions need to be drastically reduced to mitigate the environmental impacts caused by climate change, and to lead to a transformation of the European energy system. A model landscape consisting of four final energy consumption sector models with high spatial (NUTS-3) and temporal (hourly) resolution and the multi-energy system model ISAaR is extended and applied to investigate the transformation pathway of the European energy sector in the deep emission mitigation scenario solidEU. The solidEU scenario describes not only the techno-economic but also the socio-political contexts, and it includes the EU27 + UK, Norway, and Switzerland. The scenario analysis shows that volatile renewable energy sources (vRES) dominate the energy system in 2050. In addition, the share of flexible sector coupling technologies increases to balance electricity generation from vRES. Seasonal differences are balanced by hydrogen storage with a seasonal storage profile. The deployment rates of vRES in solidEU show that a fast, profound energy transition is necessary to achieve European climate protection goals. Full article
(This article belongs to the Special Issue Transition of Renewable Energy Policy: What Energy Markets Can and Cannot Solve)
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24 pages, 526 KiB  
Article
A Capacity Market for the Transition towards Renewable-Based Electricity Generation with Enhanced Political Feasibility
by Sebastian Schäfer and Lisa Altvater
Energies 2021, 14(18), 5889; https://doi.org/10.3390/en14185889 - 17 Sep 2021
Cited by 4 | Viewed by 1884
Abstract
There is a debate if electricity markets on the basis of energy-only markets ensure a sufficient generation capacity. Various capacity mechanisms are discussed to tackle this potential problem. Capacity auctions with reliability options are seen as one market-based solution. Assuming a perfect energy-only [...] Read more.
There is a debate if electricity markets on the basis of energy-only markets ensure a sufficient generation capacity. Various capacity mechanisms are discussed to tackle this potential problem. Capacity auctions with reliability options are seen as one market-based solution. Assuming a perfect energy-only market, this mechanism leads to an equilibrium with an optimal capacity mix. This optimum is missed if there are distorted price signals at the electricity market. This is a serious problem since, despite substantial cost reductions, renewable-based electricity generation still depends on subsidies, which are not internalized at electricity markets. We develop a capacity market that internalizes subsidies for RES without direct intervention in the electricity market. The result is an endogenous discrimination of capacity prices, which enhances acceptance for a capacity market. Arising incentives direct the capacity mix to an equilibrium where discriminated prices converge to one uniform capacity price. The equilibrium is the optimal answer of fossil capacity to RES-based electricity generation. Full article
(This article belongs to the Special Issue Transition of Renewable Energy Policy: What Energy Markets Can and Cannot Solve)
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32 pages, 657 KiB  
Article
Modelling Bidding Behaviour on German Photovoltaic Auctions
by Enikő Kácsor
Energies 2021, 14(2), 516; https://doi.org/10.3390/en14020516 - 19 Jan 2021
Cited by 3 | Viewed by 3135
Abstract
In this article renewable energy support allocation through different types of auctions are assessed. The applied methodological framework is auction theory, based on the rules governing the German photovoltaic (PV) Feed-in Premium (FIP) auctions. The work focuses on bidding strategies based on an [...] Read more.
In this article renewable energy support allocation through different types of auctions are assessed. The applied methodological framework is auction theory, based on the rules governing the German photovoltaic (PV) Feed-in Premium (FIP) auctions. The work focuses on bidding strategies based on an extended levelised cost of electricity (LCOE) methodology, comparing two different set of rules: uniform price and pay-as-bid. When calculating the optimal bids an iteration is developed to find the Nash-equilibrium optimal bidding strategy. When searching for the bid function, not only strictly monotone functions, but also monotone functions are considered, extending the framework typically applied in auction theory modelling. The results suggest that the PV support allocation in the German auction system would be more cost efficient using the uniform pricing rule, since many participants bid above their true valuation in the pay-as-bid auction Nash-equilibrium. Thus from a cost minimising perspective, the application of uniform pricing rule would be a better policy decision. Full article
(This article belongs to the Special Issue Transition of Renewable Energy Policy: What Energy Markets Can and Cannot Solve)
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17 pages, 1804 KiB  
Article
Day-Ahead Market Modelling of Large-Scale Highly-Renewable Multi-Energy Systems: Analysis of the North Sea Region towards 2050
by Juan Gea-Bermúdez, Kaushik Das, Hardi Koduvere and Matti Juhani Koivisto
Energies 2021, 14(1), 88; https://doi.org/10.3390/en14010088 - 25 Dec 2020
Cited by 11 | Viewed by 2652
Abstract
This paper proposes a mathematical model in order to simulate Day-ahead markets of large-scale multi-energy systems with a high share of renewable energy. Furthermore, it analyses the importance of including unit commitment when performing such analysis. The results of the case study, which [...] Read more.
This paper proposes a mathematical model in order to simulate Day-ahead markets of large-scale multi-energy systems with a high share of renewable energy. Furthermore, it analyses the importance of including unit commitment when performing such analysis. The results of the case study, which is performed for the North Sea region, show the influence of massive renewable penetration in the energy sector and increasing electrification of the district heating sector towards 2050, and how this impacts the role of other energy sources, such as thermal and hydro. The penetration of wind and solar is likely to challenge the need for balancing in the system as well as the profitability of thermal units. The degree of influence of the unit commitment approach is found to be dependent on the configuration of the energy system. Overall, including unit commitment constraints with integer variables leads to more realistic behaviour of the units, at the cost of considerably increasing the computational time. Relaxing integer variables significantly reduces the computational time, without highly compromising the accuracy of the results. The proposed model, together with the insights from the study case, can be especially useful for system operators for optimal operational planning. Full article
(This article belongs to the Special Issue Transition of Renewable Energy Policy: What Energy Markets Can and Cannot Solve)
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