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Abstract:
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The regulatory approach to supply security in electricity markets has been
substantially altered since power markets were partly privatized and reregulated
in the mid 1990’s, when regulators chose to rely on market based
prices and decentralized commercially based decisions on generation capacities.
Prior to this market restructuring power systems basically worked as
planned economies, however, the decentralization of production decisions introduced
stochastic elements to electricity systems.
Additionally, since the early 2000’s, power generating companies, often
incentivized by the state, started increasing the share of renewable but intermittent
energy sources in their generation portfolios. Due to its intermittency
the production process of wind, solar and hydro power is difficult to plan and
therefore the final amount of power that enters the market at each point in
time becomes difficult to predict. As the level of power supply intermittency
increases, so also do the number of challenges that market based approaches
face in organizing secure power systems.... |
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