Electricity Market under a Future Grid

Growing penetration of renewable energy technologies, development of smart grid including microgrid, electric vehicles, advanced energy storage system and smart sensors, growing number of distributed energy resources (DERs), such as smaller‐scale generators, microturbines, and fuel cells, connected to the distribution system, are some of the emerging developments in the power grid. Some electricity markets are already dealing with, or are in the process of dealing with such emerging issues. This chapter describes these emerging issues and their potential impact on current electricity markets. Generally, renewable energy sources (RES) include solar electric, solar thermal, wind, hydroelectric power, geothermal, ocean current, or wave energy resource. There are two main forms of subsidies applied to renewable energy generation; the Feed‐in Tariff and the Renewable Portfolio Standards. The chapter discusses the demand response (DR) issues in three different domains: generation, distribution, and consumers.