Decentralised assessment of future capacities for resource adequacy studies in the European power system

In addition to weather-dependent renewables, the future power system will also need capacity that can be dispatched at any time to ensure resource adequacy. However, decreasing full load hours and high uncertainties mean that there may not be enough dispatchable capacity available in the future. For this reason, an Economic Viability Assessment is necessary in order to verify whether sufficient dispatchable capacity will be available in the future to ensure resource adequacy. In essence, two distinct approaches can be identified. The first is a centralised approach, which aims to achieve an economic optimum from the perspective of a central planner. The second is a decentralised approach, which determines the economic optimum from the perspective of the numerous individual players within the power system. The present paper employs a decentralised approach to modelling. The model incorporates uncertainties, technological risk and risk aversion. Subsequently, the impact of the resulting increases and decreases in dispatchable capacities on resource adequacy will be analysed. The findings indicate that in the majority of the bidding zones investigated, dispatchable capacities are determined to be uneconomical. Consequently, the resource adequacy parameters also decrease.