On the regulatory and economic incentives for renewable hybrid power plants in Brazil

IF 13.6 2区经济学 Q1 ECONOMICS

Energy Economics Pub Date : 2024-10-26 DOI:10.1016/j.eneco.2024.107989

Alexandre Street , Pedro Prescott

{"title":"On the regulatory and economic incentives for renewable hybrid power plants in Brazil","authors":"Alexandre Street , Pedro Prescott","doi":"10.1016/j.eneco.2024.107989","DOIUrl":null,"url":null,"abstract":"<div><div>The complementarity between renewable generation profiles has been widely explored in the literature. Notwithstanding, complex interactions between regulatory and economic frameworks add interesting challenges and opportunities for hybrid power plant investors, regulators, and planners. Focusing on the Brazilian power market, we study the alignment of incentives between the economically-optimized strategy of hybrid power plant investors and the efficient utilization of the transmission resources. To do that, we propose a decision model that co-optimizes the risk-adjusted strategy of a hybrid power plant owner comprising (i) the forward-market involvement, (ii) the contracted amount of network access, and (iii) the share of renewable sources composing the hybrid power plant. We also propose adjusting the current regulatory framework to consider a unified calculation for the Firm Energy Certificates of non-controllable renewable power plants, including hybrid units. Based on that, we ensure a non-discriminatory regulatory framework for renewables acknowledging the diversity of generation profiles that hybrid units may have due to their optimal hybridization shares and network-access contracting strategies. A case study using realistic data from the northeastern region of the Brazilian power system showcases strong economic incentives for hybridization with reduced transmission resource utilization.</div></div>","PeriodicalId":11665,"journal":{"name":"Energy Economics","volume":"140 ","pages":"Article 107989"},"PeriodicalIF":13.6000,"publicationDate":"2024-10-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Energy Economics","FirstCategoryId":"96","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S0140988324006972","RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"ECONOMICS","Score":null,"Total":0}

引用次数: 0

Abstract

The complementarity between renewable generation profiles has been widely explored in the literature. Notwithstanding, complex interactions between regulatory and economic frameworks add interesting challenges and opportunities for hybrid power plant investors, regulators, and planners. Focusing on the Brazilian power market, we study the alignment of incentives between the economically-optimized strategy of hybrid power plant investors and the efficient utilization of the transmission resources. To do that, we propose a decision model that co-optimizes the risk-adjusted strategy of a hybrid power plant owner comprising (i) the forward-market involvement, (ii) the contracted amount of network access, and (iii) the share of renewable sources composing the hybrid power plant. We also propose adjusting the current regulatory framework to consider a unified calculation for the Firm Energy Certificates of non-controllable renewable power plants, including hybrid units. Based on that, we ensure a non-discriminatory regulatory framework for renewables acknowledging the diversity of generation profiles that hybrid units may have due to their optimal hybridization shares and network-access contracting strategies. A case study using realistic data from the northeastern region of the Brazilian power system showcases strong economic incentives for hybridization with reduced transmission resource utilization.

查看原文本刊更多论文

关于巴西可再生混合动力发电厂的监管和经济激励措施

文献对可再生能源发电的互补性进行了广泛探讨。尽管如此，监管框架和经济框架之间复杂的相互作用为混合发电厂投资者、监管者和规划者带来了有趣的挑战和机遇。我们以巴西电力市场为重点，研究了混合发电厂投资者的经济优化战略与输电资源有效利用之间的激励机制协调问题。为此，我们提出了一个决策模型，该模型可共同优化混合电厂所有者的风险调整战略，其中包括：(i) 参与远期市场；(ii) 网络接入合同金额；(iii) 构成混合电厂的可再生能源份额。我们还建议调整现行监管框架，考虑统一计算包括混合机组在内的非可控可再生能源电厂的固定能源证书。在此基础上，我们确保为可再生能源制定一个非歧视性的监管框架，承认混合机组因其最佳混合比例和网络接入合同策略而可能具有的发电情况多样性。利用巴西电力系统东北部地区的真实数据进行的案例研究表明，在降低输电资源利用率的情况下，混合发电具有很强的经济激励作用。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

求助全文

约1分钟内获得全文求助全文

来源期刊

Energy Economics ECONOMICS-

CiteScore

18.60

自引率

12.50%

发文量

524

期刊介绍： Energy Economics is a field journal that focuses on energy economics and energy finance. It covers various themes including the exploitation, conversion, and use of energy, markets for energy commodities and derivatives, regulation and taxation, forecasting, environment and climate, international trade, development, and monetary policy. The journal welcomes contributions that utilize diverse methods such as experiments, surveys, econometrics, decomposition, simulation models, equilibrium models, optimization models, and analytical models. It publishes a combination of papers employing different methods to explore a wide range of topics. The journal's replication policy encourages the submission of replication studies, wherein researchers reproduce and extend the key results of original studies while explaining any differences. Energy Economics is indexed and abstracted in several databases including Environmental Abstracts, Fuel and Energy Abstracts, Social Sciences Citation Index, GEOBASE, Social & Behavioral Sciences, Journal of Economic Literature, INSPEC, and more.