The market share of renewable energies, and among them, intermittent energies, is getting higher and higher. These energies offer various features in terms of predictability. Tidal energy is highly predictable. Instantaneous or daily production of a photovoltaic installation may be somewhat random, but annual and seasonal productions are fairly predictable. Individual production of a wind turbine is hardly predictable, regardless of the time scale. 

This raises specific issues in order to ensure proper matching between supply and demand. In order to meet these issues, a number of solutions can be proposed: 

The problem of balancing market can be view as an optimization problem in a competitive environment with uncertainty in resource and demand. 

References

[1] van der Veen, Reinier AC, and Rudi A. Hakvoort. "The electricity balancing market: Exploring the design challenge." Utilities Policy 43 (2016): 186-194. 

[2] COMMISSION REGULATION (EU) 2017/2195 of 23 November 2017 establishing a guideline on electricity balancing (2017). 

[3] Stoft, Steven. "Power system economics." Journal of Energy Literature 8 (2002): 94-99.

 Contributors:

Philippe Ezran and Yoram Haddad, Jerusalem College of Technology