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Renewable Energy Opportunities and Challenges in the U.S. Electricity Markets

Sulaiman A. Almohaimeed(1*)

(1) Department of Electrical Engineering, College of Engineering, Qassim University, Unaizah, Saudi Arabia
(*) Corresponding author



During the last twenty years, the integration of Renewable Energy Resources (RESs) projects has become feasible in many electricity markets around the globe. The primary objective of these developments is to reduce carbon dioxide (CO2) emissions. In many countries, RESs integration projects could make a profit according to the subsidies policies of each electricity market. The United States (U.S.) electricity market is considered the most competitive one in the world. Hence, RES integration is subject to many financial and technical factors that eventually affect the integration process. Since the electricity production from RESs in the U.S. electricity market has become cost-effective, many projects have been implemented in a short period. In this paper, a discussion on the opportunities and challenges of renewable energy integration in the U.S. electricity market is demonstrated. The research starts with an overview of the electricity market in the U.S. with policies and bylaws governing the RESs integration. Some factors might empower the renewable energy deployment. Environmental aspects, government subsidies, regulations, and marginal cost price increase the renewable energy opportunities in the U.S. electricity market. By contrast, the paper discussed many challenges faced by renewable energy such as generation variability, intermittency, environmental issues, and capital and reserve cost. Such challenges might affect the electricity market prices. This paper provides an insight to the developed plans to implement RESs and control GHG emissions. In addition, corresponding policies to encourage RES integration and their technical impacts are highlighted. Restructuring the market and developing Renewable Energy Sources technologies are recommended to increase renewable energy market share in the future.
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Ancillary Services; Demand; Electricity; Environment; Forecast; Intermittency; Marginal Cost; Market; Penetration; Price; Renewable Energy; Reserve; Storage; Subsidies; Supply; Tax Credit

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