IMPROGRES - Improvement of the Social Optimal Outcome of Market Integration of DG/RES in European Electricity Markets
Research in the field of DG/RES in the EU helped to understand the economic impact of an increasing DG/RES deployment on the electricity system. Recommendations where mainly focused on increasing the effectiveness of policy measures (e.g. removal of barriers for grid connections) and/or increasing the efficiency of policy measures for a part of the electricity supply system (e.g. support schemes for RES production, regulation of networks, etc.). The risk of partial optimisation is that they may lead to sub-optimal overall results for the whole system. The consequence is (too) high costs for consumers and society, in particular if amounts of DG/RES electricity are becoming large
The IMPROGRES project will analyse the impact of large scale DG/RES deployment for the whole electricity supply system, i.e. considering the interactions and trade-offs between the physical and economic system: power generation (incl. DG/RES), transport (transmission and distribution networks), energy wholesale trading and retail supply, system services (balancing, power reserves, ancillary services) and energy consumption (incl. demand response). Furthermore, the boundary conditions are of importance: policy (support schemes) and regulation (e.g. network regulation). Also external effects will be considered (e.g. environmental impacts). To avoid a too generic and only qualitative approach the analysis of the total supply system will be applied for three concrete cases for which quantitative data will be available. These analysis will be used as the basis for identification of regulatory and policy improvements.