Integrating Variable Renewable Energy in Electric Power Markets: Best Practices from International Experience (Fact Sheet)

Many countries--reflecting very different geographies, markets, and power systems--are successfully managing high levels of variable renewable energy (RE) on the grid. Australia (South Australia), Denmark, Germany, Ireland, Spain, and the United States (Colorado and Texas), for example, have effectively integrated variable RE utilizing diverse approaches. Analysis of the results from these casestudies reveals a wide range of mechanisms that can be used to accommodate high penetrations of variable RE (e.g., from new market designs to centralized planning). Nevertheless, the myriad approaches collectively suggest that governments can best enable variable RE grid integration by implementing best practices in five areas of intervention: lead public engagement, particularly for newtransmission; coordinate and integrate planning; develop rules for market evolution that enable system flexibility; expand access to diverse resources and geographic footprint of operations; and improve system operations.