Abstract
Large-scale hybrid power plants, composed of two or more generation sources and with the participation of energy storage systems, have driven important electricity Market Design regulation discussions worldwide. Regulatory framework ought to be adapted to support technical particularities of these new generation arranges. This paper presents an assessment of the main requirements to be met by Market Design to enable hybrid power plants by means of assertive market incentives. Assessing regulatory adjustments promoted in Australia, United States, India, China, and Brazil, emphasizing the latter one, the authors presents a case study by applying specific computational simulation and optimization model to a hybrid Hydro-Solar plant, that supports the findings for the necessary evolution needed in the national regulatory framework in order to enable hybrid projects. The evaluation of international experiences indicates that the insertion of hybrid projects is associated with the design of the market they belong to and demand regulatory adjustments so that their attributes can be properly valued for the benefit of all stakeholders, especially for the electricity consumer.
Highlights
Investors and developers seek private profitable and yielding opportunities while policymakers look forward to social, environmental, and public well-being
This is a relevant point that drives to a market design improvement when considering hybrid projects, allowing a decentralized dispatch decision of the hydropower plant (HPP), even impacting other plants generation, providing that the global result is optimized, what is not allowed by current regulation that supports the Brazilian market design
Considering international experience studied in this paper and the results of the case study of a centrally operated hydropower plant, it is possible to confirm that enabling hybrid projects depends on appropriate market design, which must be modernized as technology and customer profile evolves
Summary
Investors and developers seek private profitable and yielding opportunities while policymakers look forward to social, environmental, and public well-being. Another issue to be faced is whether the characterization of a generation project as hybrid requires the singularity of the transmission network connection point or not as well as if it is allowed to storage system to charge with energy from the grid [7] Taking advantage of these benefits for electricity investors and consumers’ interests demands appropriate market design, capable to match system generation and transmission reliability needs with developers’ interest, considering natural resources availability and exploitation attractiveness from economic and environmental point of view [8].
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