Market designs for high levels of variable generation

Variable renewable generation is increasing in penetration in modern power systems, leading to higher variability in the supply and price of electricity as well as lower average spot prices. This raises new challenges, particularly in ensuring sufficient capacity and flexibility from conventional technologies. As the fixed costs and lifetimes of electricity generation investments are significant, designing markets and regulations which ensure efficient integration of renewable generation is a significant challenge. This panel presentation reviews the state of play in the USA and Europe with regard to these issues and considers new developments in both regions.