High renewable electricity penetration: Marginal curtailment and market failure under “subsidy-free” entry

A-Tier
Journal: Energy Economics
Year: 2023
Volume: 126
Issue: C

Score contribution per author:

4.022 = (α=2.01 / 1 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Ambitious plans to decarbonize electricity will require high levels of variable renewable electricity (VRE). At high VRE penetration, the surplus that cannot be exported must be curtailed (spilled). The last MW of wind capacity will be curtailed 3+times more hours than the average, but even in efficiently designed markets, price signals for VRE investment are given by average, not marginal, curtailment, creating a “tragedy of the commons” that requires a corrective charge to restore efficiency. The paper sets out an analytical model calibrated to Ireland in 2026, showing the source of this distortion and estimates of its magnitude.

Technical Details

RePEc Handle
repec:eee:eneeco:v:126:y:2023:i:c:s0140988323005091
Journal Field
Energy
Author Count
1
Added to Database
2026-01-26