Energy Policy, Vol.112, 291-300, 2018
Consumption-based approach to RES-E quantification: Insights from a Pan-European case study
The nexus between renewable electricity (RES-E) generation and interconnection is likely to play a large part in future de-carbonised power systems. This paper examines whether RES-E shares should be measured based on consumption rather than production with a European case study presented for the year 2030. The case study demonstrates the volume and scale of RES-E transfers and shows how countries have differing RES-E shares when comparing those derived based on the traditional production-based approach to the alternative. The proposed consumption-based approach accounts for RES-E being imported and exported on an hourly basis across 30 European countries and highlights concerns regarding uncoordinated support mechanisms, price distortions and cost inequality. These concerns are caused by cross-border subsidisation of electricity and this work propoes that an agency be appointed to administer regional RES-E affairs. This agency would accurately quantify RES-E shares and remunerate producers from the country that consumed their electricity instead of where it has been produced policy would be enhanced by enabling more equitable and optimal electricity decarbonisation.
Keywords:EU Target Model;Consumption-based renewable electricity quantification;Member State RES-E targets;Cross-border subsidisation