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The ambitious targets of the European Union (EU) for a greater penetration of renewable energy sources (RES) in all areas of activity have led to power systems with growing levels of variable RES (VRES) all over the EU. Considering these targets, the EU countries presented their National Energy and Climate Plans (NECP) with their expected capacity until 2030. The NECPs considered a relevant increase in the VRES capacity and in some cases a decrease in the capacity of dispatchable power plants. VRES have near-zero marginal costs and increase the volatility of the net-load due to the stochastic profile of their production. These characteristics increase the need to maintain fast-response dispatchable power plants to guarantee the security of supply and also decrease market prices. Thus, governments promote externalities, as capacity mechanisms and other incentives to these players, guaranteeing their economic sustainability. This study presents the optimization of the non-RES thermal capacity of the Iberian power system by 2030, considering the least-cost algorithm. Considering a cooperative scenario between Portugal and Spain, it is possible to reduce the system costs by 17.40%, the curtailments quantity by 21.93%, the number of market-splitting hours by 43.26% and the dioxide carbon emissions by 4.76%.

Least-Cost Non-RES Thermal Power Plants Mix in Power Systems with Majority Penetrations of Renewable Energy