Renewable energy integration and balancing in single buyer electricity markets

This paper analyses the current practice of variable RE market integration in a selected number of non-liberalized electricity markets and studies further regulatory options in systems not based on markets.

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In emerging economies, the responsibility for variable renewable energy forecast and system integration typically lies with the single buyer. With ever higher shares of renewable energy, this approach is likely to come to its limits, because it fails to incentivize the provision of flexibility inherent in the system. The current paper investigates three principal options to deal with the challenges also in a single buyer structure without an organised wholesale market.