Impact of unit commitment and RoCoF constraints on revenue sufficiency in decarbonising wholesale electricity markets

Growth in wind and solar generation can dramatically reduce energy prices at times when these variable resources are abundant. However, such generation technologies do not typically provide reserves or other services such as inertia, which are instead provided by hydrothermal generators. This paper examines whether renewable and thermal technologies are revenue sufficient under marginal cost pricing in various renewable-rich fleets. Extensions also test the impact of an inertia constraint and availability of low-cost batteries.

[This is a pre-publication version of a paper published in Energy Economics, 106, 105763]