Report on Electricity markets and RES integration – Key challenges and possible solutions - Towards2030-dialogue

Power systems were conceived on a set of paradigms that reflected the technical options available then. In particular they were based on a set of large controllable plants at the transmission level that are dispatched centrally to match the variations of an inelastic load. Electricity markets were then introduced to provide the short-term and long-term signals required to coordinate a set of competitive actors and ensure optimal dis- patch and investment in generation assets. The design of electricity markets was logically adapted to the fea- tures of power systems by then. However, the features of intermittent1 RES that are introduced in power sys- tems today are very different from the ones of a typical combined cycle gas turbine. In order to understand the challenges for electricity markets and RES integration, it is necessary to understand how intermittent2 RES differ from the more traditional power plants.