New developments in electricity markets following large-scale integration of renewable energy

Renewable energy supply (RES) is no longer a niche market; projections indicate that RES will likely cover a very substantial part of electricity supply from 2030 onwards. Today, 14 percent of European energy demand is met by RES. In some countries, such as Sweden, Austria, and Latvia, more than 30 percent of gross final energy consumption is met by renewable energies (Eurostat, 2014). In Germany, one quarter of gross electricity production is provided by RES (BMWi, 2014). Germany has plans to increase this share to 50 percent by 2030, and 80 percent in 2050 (BMWi, 2010). Relying on current policies, it is safe to conclude that RES is no longer a negligible part of the market; RES has already grown to be a serious player. What does this all mean for electricity markets? It seems that it changes the entire playing field.