Abstract:
Distributed and decentralized energy production plays a crucial role in enabling the green transition through prosumer empowerment. The integration of renewables, e.g., wind and solar power, however, brings the inherent volatility in power generation to the energy grid. While this problem has been extensively studied, the actual impact of renewables on the energy market, particularly on imbalance settlement, is largely unexplored. Investigating the impact of renewables on energy market is crucial for practical success of the green transition in the long run - as it plays a critical role in energy system resilience. In this paper, we present an assessment of the impact of integrating renewable energy resources on the energy market - specifically on imbalance settlement through two parameters: the energy volume for imbalance settlement and the balancing price. We model the dynamics between renewable generation and imbalance volume/balancing price and conduct simulations to demonstrate the impact numerically, and visualize the resilience of the energy system when more solar and wind power are integrated.