Propose an incentive methodology of renewable energy to participate in competitive electricity market
Abstract
Today, the rapidly increasing share of renewable energy sources requires a suitable mechanism to promote the development of renewable energy is urgently needed. To solve this problem, the paper will conduct a study to find out the incentive mechanism to promote the development of renewable energy with participation in the electricity market. The article compares different models of Fixed feed-in premium with CAP and FLOOR (month, week, day, and cycle) to point out the advantages and disadvantages of each model, thereby providing comments and assessing the impact of the models on the revenue of renewable energy plants. The result shows that the monthly average revenue of FIXED FIP with CAP and FLOOR (0.19-0.23 million VND/MWh) is less variation than half-hourly (0.16-0.23 million VND/MWh) and daily revenue (0.18-0.23 million VND/MWh). Moreover, the monthly model can mitigate the variation of spot price and cop with the payment period (monthly).
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