Foreword for the Special Section on Wind and Solar Energy: Uncovering and Accommodating Their Impacts on Electricity Markets

Abstract

The articles in this special section focus on wind and solar energy and the impact these energy technologies and services will have the utility markets. The aim is to give particular focus on some of the areas of investigation that may allow to 1) uncover the impact of renewables on electricity market (e.g., on market-clearing outcomes, need for ancillary services, and investment), and to 2) propose methodological innovations, being theoretically sound and of practical relevance, in order to accommodate substantial shares of renewables in power systems. Electricity network and markets were designed based on a long history of dealing with various forms of dispatchable generation, as well as a fairly predictable inelastic electricity consumption pattern, in a centralized top-down manner. Little uncertainty was involved on both generation and demand sides, hence allowing for a design of electricity markets accounting for the necessity of a forward optimal allocation, with a real-time mechanism supporting actual power system operation.