Distribution of costs induced by the integration of RES-E power

Abstract

This article focuses on the distribution of costs induced by the integration of electricity generation from renewable energy sources (RES-E). The treatment to distribute these costs on different market actors is crucial for its development. For this purpose, individual actors of electricity markets and several cost categories are identified. According to the defined cost structure, possible treatments to distribute the individual cost categories on different relevant actors are described. Finally, an evaluation of the cost distribution treatments based on an economic analysis is given. Economic efficiency recommends that clearly attributable (shallow) grid connection as well as (deep) grid costs are charged to the corresponding RES-E producer and that the RES-E producers are also charged the regulating power costs. However, deep grid integration costs should be updated to reflect evolving scarcities. Also regulating power costs should reflect actual scarcity and thus be symmetric and based on real-time prices, taking into account the overall system imbalance. Moreover, the time span between the closure of the spot market and actual delivery should be chosen as short as possible to enable accurate RES-E production forecasts.