Reserve power markets face the challenge of balancing short-term fluctuations in the transportation grid to stabilize the power system’s frequency. The current reserve power market was designed at a time when plant outages and load fluctuations were the main challenges. In contrast, the increase of volatile feed-in of solar and wind generation requires a fundamental rethinking about the current market design.
The project focusses on analyzing the current market design, the effectiveness and efficiency of the implemented instruments and, in particular, the future technical, economic and regulatory challenges to the reserve power market and the electricity supply system.
Against the background of a strong interrelation between economic and technical issues in electricity systems, the analysis requires a holistic examination within the framework of an interdisciplinary approach. Therefore, the collaboration with our partner IAEW Institute of Power Systems and Power Economics of the RWTH Aachen is best suited to achieve the goals of this project.