New Solutions for Renewable Energy Trading

Abstract

The paper presents one of the key problems in renewable energy trading. The support system for RES is operating on financial levels leaving to the RES producers decisions on the energy trade. However, the flawed legal regulations impose the obligations on Default Electricity Supplier (SzU1) to buy all RES production from the installations located in the areas of the SzU operation. Such legal provisions result in the additional burden on the SzU, which main duty is to provide electric energy to customers who do not want to enter competitive electricity markets. Additionally, over interpretation of the Energy Law provisions by the Energy Regulatory Authority (URE2), allowing the RES producers to trade a part of their production on electricity markets leaving the obligation on SzUs, has led to the speculative trade of renewable energy. Some RES producers sell the electricity produced in competitive markets during peak demand hours – usually working days from 7 a.m. to 8 p.m. – when the Power Exchange prices are significantly higher than the obligatory purchase price. When during off peak demand hours electricity prices in the Power Exchange are lower than the obligatory level, RES producers sell the electric energy to SzUs at the obligatory price, determined by the URE. Such an abuse of fair trade results in the additional income for the RES producers being burden on SzUs, which have to transfer such costs to energy endusers. The simulations, carried out for Poland indicate that the additional costs can count for about 200 mln zł per year.