Evaluating resource adequacy impacts on energy market prices across wind and solar penetration levels

Abstract This study evaluates market impacts of excess capacity across various wind and solar system penetrations. First, different fleet compositions are simulated in a production cost model to yield price outputs. Price statistics reveal a strong relationship between scarcity price events, resource adequacy, and the mean and standard deviation of prices. Next, a method is presented for adjusting resource adequacy to a chosen level, which links a capacity expansion model with a probabilistic resource adequacy model.