Integrating Intermittent Energy Sources in Liberalised Electricity Markets: From Technical Costs to Economic Penalties as a Result of Market Rules

With the aim of preventing climatic change and ensuring the security of energy supplies, the recent European Directive on renewable energy production sources is aimed at bringing about a very substantial increase in electricity production from renewable sources in Europe by the 2010 horizon. On average, the proportion will increase from 3.5% to 12.5% of total electricity consumption if one excludes the large hydroelectric power stations, whose potential for development in Europe is very limited. If the targets set for the Member States are reached, the proportion of renewable electricity, excluding the large hydroelectric power stations, could exceed 20% in some countries, reaching for example 29% in Denmark, 22% in Finland and Portugal, and 21% in Austria.