100% renewable power requires radical EU market fix, Poles argue

(EurActiv, 17 Jul 2019) Polish energy officials have called for a major overhaul of EU power markets, saying the deployment of up to 100% renewables will require a decentralised way of trading electricity, based on local “nodes” rather than regional bidding zones defined at European level.

PSE, Poland’s state-owned power transmission operator, wants to “change the European system” of regional electricity trading hubs, and plans to establish close to 4,000 local trading “nodes” on its territory instead.

Wind and solar energy “will be deployed on a massive scale” in the coming decade, resulting in much more decentralised power generation than today, said Leszek Jesien, director at PSE in charge of international cooperation.

And a decentralised power system has to be underpinned by trading which is “as close as possible to real-time” in order to reflect local market conditions, he told a EURACTIV event held last month.

In PSE’s view, the EU’s electricity trading model based on regional bidding zones is incapable of dealing with 100% renewable power. It “leads to large imbalances in the system” depending on where the wind blows or the sun shines, Jesien explained. And that “requires large amounts of re-dispatching efforts in order to keep the system in balance,” he pointed out.

A nodal approach, by contrast, would not require constant re-dispatching efforts, and would inherently be more stable, he argued, because it closely reflects the availability of local network and power generation capacity.

“I argue we will not be able to absorb renewables securely if [electricity trading] is not run on a nodal basis,” Jesien claimed.

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EurActiv, 17 Jul 2019: 100% renewable power requires radical EU market fix, Poles argue