Oxford Energy Podcast – Glimpses of the future electricity system?
In this podcast, David Ledesma talks to Malcolm Keay and David Robinson who discuss their new OIES paper on recent “glimpses” of what the future electricity system may bring, notably the rise of intermittent solar PV and wind energy as a share of total electricity generation. They reflect on these glimpses – which were visible during the early stages of COVID-19 – and propose a two-market approach that would help to address the challenge of integrating intermittent renewables, especially by encouraging flexible demand to match output from renewables. Since this approach would require fundamental change to existing markets, that might be too much to expect in the near term, they recommend experimenting with the introduction of individual elements of the two-market approach. One proposal is for governments that organize centralized auctions for renewables to use them to incentivize demand-side flexibility through supply contracts that mirror the generation contracts with renewable generators.