Page 30 - European Energy Innovation magazine - spring 2023 edition

Spring 2023 European Energy Innovation
30 COMMUNICATION

Project TradeRES

New Market Designs for a near 100% Renewable European Power System

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By Ana Estanqueiro , António Couto , Dawei Qiu , Goran Strbac , Evelyn Sperber ,
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Gabriel dos Santos , Johannes Kochems Jos Sijm , Nikos Chrysanthopoulos , Zita Vale 4
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he electrical power sector current design does not favour their existing agent-based market models
landscape was shaped fair participation unconditionally, due are being further improved with new
in recent years by the to the inherent fluctuation nature features and coupling worksflows,
TEuropean Union’s energy of vRES generation. The need of and also new models are being
policy and focus on the transition R&D assisting to adapt the current developed, that are applied to five
to a decarbonised energy system. electricity market rules to a new different case studies ranging from
Renewable generation has grown trading and power system’s paradigm local communities and markets (Case
significantly in the past decades, is widely recognized these days. Study A) to the European market
and this steady growth will continue (Case Study E), passing through the
in the coming years. Large-scale That was the context in which project national and regional scales (B – The
fossil-fuelled power plants are being TradeRES – Tools For The Design Netherlands, C- Germany and D-
phased-out, while variable renewable And Modelling Of New Markets Iberia/MIBEL), as depicted in Fig. 1.
energy systems (vRES), especially And Negotiation Mechanisms For A
solar and wind technologies, are ~100% Renewable European Power The TradeRES project was conceived
continuously increasing their shares System (H2020 contract 864276) with an iterative methodology
in the supply mix. In addition, flexible was conceived, having as goals (Fig. 2), in which the newly developed
storage resources (e.g. electric to: i) Identify actual barriers and designs and products are tested by
vehicles, batteries or heat pumps) deficiencies of current energy market market stakeholders. The second
are being deployed and an increasing and pricing structures; ii) Calculate iteration of the studies will apply a
number of end users are changing cost, value, and price structure new improved version of the market
from passive consumers into of electricity in a ~100% vRES- functionalities reflecting the inputs
prosumers. dominated electricity system for and suggestions received from the
2030 and beyond; iii) Conceive, design stakeholders.
At present, it is still unclear if current and model electricity markets that
electricity markets design, which deal with novel flexibility products; TradeRES’ research questions,
is based largely on marginal costs iv) Develop optimization and agent- scenarios and Market Performance
pricing, will be able to evolve into a based market models beyond the Indicators for ~100% RES Power
form adequate to embed the impact state-of-the-art. Systems
of the rising penetrations of vRES. A deep and detailed exercise was
However, it is already clear that the To achieve these ambitious goals, conducted to clearly identify the
relevant research questions (RQs) to
be addressed by the project, cluster
them within classes, as well as to
Figure 1 associate them to the capabilities
Figure 1 of different models and markets
characteristics. Seven different
classes of RQs were identified: 1)
Improvement of energy-only (EOM)
short-term markets; 2) system design
and adequacy; 3) ancillary services in
~100% power systems; 4) investment
incentives for vRES and 5) for
secure capacities (EOM or capacity
mechanisms); 6) Incentivizing
distributed flexibility and local
markets and 7) Incentivizing demand
response and sector coupling.
A set of scenarios were developed

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