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This paper explains why current electricity markets are not fit for purpose and proposes a new consumer-driven two-market design to support very high penetrations of intermittent renewable energy. The structure encourages demand flexibility; enables consumers to choose what mix of energy they wish to purchase from the two markets (as available renewable energy or on demand flexible energy); encourages them to shift their demand to the as available market (and to acquire storage and other load-shifting appliances); provides a market-basis for financing flexible plant; and offers an exit strategy for government subsidies to renewables and flexible plants.
‘This publication may be reproduced in part for educational or non-profit purposes without special permission from the copyright holder, provided acknowledgment of the source is made. No use of this publication may be made for resale or for any other commercial purpose whatsoever without prior permission in writing from the Oxford Institute for Energy Studies
Published on 11/05/18
Accepted on 20/04/18
Submitted on 26/02/18
Licence: Other
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