How can the energy market deal with the volatility of renewable energies?
Wind and solar energy produce electricity when the wind blows, or the sun shines. In the future, this will lead to significant volatility in electricity generation. Therefore, the generation will no longer respond to demand, but demand will instead have to adapt to generation via flexibilities. Integrating the often small-scale, future flexibilities, such as battery storage, electric vehicles, demand-side management, or electrolyzers, into the energy markets is a challenging but also necessary measure. To this end, we are investigating different market design options to drive this integration.
Specifically, we look at the following questions:
- What added value do flexibilities bring to the energy system?
- How can small-scale flexibilities be integrated into electricity markets?
- Can the system continue to guarantee security of supply with the current market design?
- How can renewable energies be integrated?
- What is the value of flexibility?