Dialogue on a RES policy framework for 2030

A report compiled within the European IEE project towards2030-dialogue (work package 5) (Grant Agreement no. IEE/13/826/SI2.674882)As the share of intermittent RES (such as wind turbines and solar PV) increases significantly, their deployment challenges the operation of power system, and impacts the role played by electricity markets that have not been designed to handle the features of intermittent RES. First of all, intermittent RES feature a variable output that depends on the availability of the resources they are based on. This variability is worsened by the lowmarginal costs of intermittent RES. RES are willing to produce whenever they can, but only when they can. Second, this output is also difficult to predict accurately. Third, the best generation sites for intermittent RES such as wind turbines are often located far away from consumption centres, creating the need for significant investment in the transmission system. On the opposite, some resources like solar PV are mostly integrated to the distribution level, creating new kinds of flows from low-voltage level to high-voltage level. Fourth, the development of intermittent RES is still driven by support mechanisms and isolated from most market-signals