Due to sustainability concerns, several countries plan to keep increasing the share of renewables in their energy mix. Among all renewables, the expansion in solar and wind power installation seem to be the most promising as sustainable solutions. Especially with their ever-decreasing prices of these two technologies and their small marginal costs, the world-wide capacity of solar and wind increases exponentially fast. The replacement of reliable fossil fuel generators with less predictable solar and wind power generation, however, brings challenges to the elements of the energy systems, one of which being electricity markets. A cost-efficient power system that is largely based on such variable renewable energy sources not only requires an appropriate mix of different generation technologies, but also the utilization of dedicated flexibility options. Flexibility is the ability of a power system to maintain continuous service once rapid and large swings in the demand or supply happens. There is a range of different approaches for increasing energy system flexibility, ranging from supply to demand side measures. Recently, energy storage technologies have received much attention. Storage would be useful with renewables, but it is often perceived somewhat optimistically as a generic solution to increasing flexibility, underestimating the scale in energy. Specific market barriers have been identified, which may be hindrance to the development of flexibility options.
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