Enabling Hybrid Projects through Appropriate Market Design

Large-scale hybrid power plants, composed of two or more generation sources and with the participation of energy storage systems, have driven important electricity Market Design regulation discussions worldwide. Regulatory framework ought to be adapted to support technical particularities of these new generation arranges. This paper presents an assessment of the main requirements to be met by Market Design to enable hybrid power plants by means of assertive market incentives. Assessing regulatory adjustments promoted in Australia, United States, India, China, and Brazil, emphasizing the latter one, the authors presents a case study by applying specific computational simulation and optimization model to a hybrid Hydro-Solar plant, that supports the findings for the necessary evolution needed in the national regulatory framework in order to enable hybrid projects. The evaluation of international experiences indicates that the insertion of hybrid projects is associated with the design of the market they belong to and demand regulatory adjustments so that their attributes can be properly valued for the benefit of all stakeholders, especially for the electricity consumer.