Moreover, a reduction of the electricity marginal price on the
spot market due to a high penetration of renewable technologies
and how the increase in renewable production drives units with
higher marginal cost out of the market have been reported in the
literature [17,32]. However, these findings are not useful for insular
systems such as in Tenerife where electricity markets do not exist
and the price of electricity is defined by somewhat complex
formulae considering fuel cost, performance and availability of
the different power units generating electricity, so called dispatch
system [33,34].
The new Spanish legislation in energy is mainly derived from
the new Law for the Electric Sector [35] and has the main objective
of making the Spanish electric system economically and financially
sustainable. This legislation defines a special regulation for insular
systems, where a specific remuneration to renewable technologies
is established and incentives to the investment are recognized
when generating cost reductions are produced [36]. A referenced
table with dates and main topics is added to support this article
(Table 1).
In this work, after some initial methodological remarks, the
Tenerife insular power system will be analyzed only based on the
data of the power grid, in contrast to other works mainly based on
algorithms and models [16,20,37]. Then, the new legislation that
defines the remuneration for new PV and wind energy production
in insular systems will be analyzed and some inefficiencies detected.
Finally, the future power mix scenarios considering the
Spanish government incentives as well as the planning proposed
by the Canary Islands government will be presented. Thus, it will
also be shown how the inefficiencies detected can be avoided.