Analysing the generation adequacy in power markets with renewable energy sources

With an integrated operation and investment optimisation model, the system adequacy for power markets with a large share of renewable energy sources (RES) is assessed. The analyses address the effect of increasing RES penetration and a potential implementation of a capacity mechanism to tackle the resulting lack of generation capacity. Moreover, sensitivity analyses for the price cap as well as the share of elastic demand are executed, pinpointing to further possibilities for resolving the system adequacy issue. The analyses show that an increasing RES penetration has a significant effect on the system adequacy. However, the implementation of a capacity mechanism or an increased price cap as well as more demand elasticity can solve the challenge.