Market Design and Regulations

Combined with the rise in distributed generation, greater shares of variable renewables are beginning to have profound impacts on electricity markets, the demand for system flexibility and the business models of traditional utilities and distribution companies. This requires a rethinking of the way the power sector markets are designed and operated and a timely and efficient adaptation of traditional mechanisms.

IRENA’s study Adapting electricity market design to high shares of Variable Renewable Energy identifies lessons learned and best practices and provides recommendations on how to adapt market rules and policies to take into consideration the evolution of the power system and to efficiently support the growth of renewable energy. These adaptations concern different stakeholders, including policy makers, regulators, grid operators at transmission and distribution level, utilities and consumers.