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Impacts of price formation efforts considering high renewable penetration levels and system resource adequacy targets / Robin Broder Hytowitz [and six others]

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Format:
Book
Government document
Author/Creator:
Hytowitz, Robin Broder, author.
Contributor:
National Renewable Energy Laboratory (U.S.), issuing body.
Series:
NREL/TP ; 6A20-74230.
NREL/TP ; 6A20-74230
Language:
English
Subjects (All):
Electric power consumption--United States.
Electric power consumption.
Gas-turbines--United States.
Gas-turbines.
Genre:
technical reports.
Technical reports.
Physical Description:
1 online resource (ix, 58 pages) : color illustrations.
Place of Publication:
Golden, CO : National Renewable Energy Laboratory, May 2020.
Summary:
Future markets with very high penetrations of renewable energy could have many low- to zero-cost periods, which would reduce energy revenues for the generation fleet. This can impact the ability of resources that are needed for long-term reliability to recover operating and capital costs. This paper explores the impact of an alternative pricing mechanism, relaxed minimum pricing, on revenue sufficiency on existing and future resource mixes, including those with high penetrations of wind and solar. This study evaluates eight scenarios encompassing three different sensitivity categories: (1) one alternative pricing mechanism versus traditional LMP pricing, (2) high versus low renewable penetration levels, and (3) using a resource mix that has been adjusted to a preset resource adequacy target versus one that contains a full set of resources. Results show renewable penetration has a greater impact on pricing and resulting profits than does the adjusted resource mix, the two pricing methods have modest variations in profits, and prices under the higher renewable penetration case were higher than under low renewable penetration. These conclusions are not intended to be direct predictions for future outcomes but rather to lead to additional research on the impacts of pricing on investment incentives and future resource adequacy targets.
Notes:
"May 2020."
In scope of the U.S. Government Publishing Office Cataloging and Indexing Program (C&I) and Federal Depository Library Program (FDLP).
Includes bibliographical references (page 55).
Description based on online resource; title from PDF title page (NREL, viewed June 9, 2025).
OCLC:
1522961023
Publisher Number:
1659808 OSTI ID
Access Restriction:
Publicly released

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