A Numeric Study of the Impact of Renewable’s Penetration in the Energy and Capacity Markets with the Participation of Energy Storage

This study investigates the impact of different renewable energy (RE) penetration on the economic and operational outcomes of integrated energy and capacity markets. Using a combined market-clearing model, we analyze the effects of varying RE levels on market dynamics and revenue distribution among generators and RE sources. Our findings indicate that increased RE penetration reduces conventional generators' revenue while enhancing RE profitability due to lower operational costs and priority dispatch. Additionally, this study aims to provide insights for policymakers and industry stakeholders and emphasizes the need for adaptive market designs that maintain system reliability and economic balance during high RE integration.