Review of Typical Incentive Policies and Market Mechanisms for Renewable Energy Accommodation

Abstract

Since the importance of developing renewable energy has been highlighted these days, the penetration level of renewable energy in power systems continues to increase worldwide. Meanwhile, due to the lack of efficient means for renewable accommodation, the renewable energy consumption is far less than its power generation and thus leads to severe renewable energy curtailment. With the deregulation of the power industry around the world, market-oriented electricity trading is regarded as a potential means to promote the consumption of renewable energy. However, a well-worked electricity market adapting to renewable energy accommodation requires corresponding support policies, market mechanisms, and trading products， which has been seldom summarized in the previous works. In this paper, typical incentive policies to promote renewable energy accommodation, trading mechanisms to support the direct trading of electricity, and risk coping mechanisms to hedge potential market risks are discussed. Finally, by analyzing the existing trading modes and comparing their applicabilities in different kinds of electricity markets, suggestions are provided for the construction of an electricity market with a high proportion of renewable energy.