Modelling the impact of wind generation on electricity market prices in Ireland: An econometric versus unit commitment approach

The European Union considers that offshore wind power will play a key role in making the EU the first climate-neutral continent by 2050. Currently, the potential of offshore wind energy is still untapped in Spain. Furthermore, the characteristics of the coastline in Spain require floating technology, making it challenging to install wind farms due to their current high cost. This work seeks to quantify the impact that Spanish offshore wind energy would have on the Iberian electricity market. Several offshore wind scenarios are evaluated by combining available information in relation to areas suitable for installing wind farms and wind resource data. The impact on the day-ahead electricity market has been obtained by reproducing the market, including these new offshore wind generation scenarios. The introduction of this renewable energy results in a market cost reduction in what is known as the merit-order effect. According to our estimates, for each MWh of offshore wind energy introduced in the market, there would be a market cost reduction of 45 €. These savings can serve as a reference for regulators to adjust their policy framework to boost floating wind offshore generation.

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Impact of wind generation control strategies, penetration level and installation location on electricity market prices

IET Renewable Power Generation ◽

10.1049/iet-rpg:20070082 ◽

2008 ◽

Vol 2 (3) ◽

pp. 162-169 ◽

Cited By ~ 38

Author(s):

T.H.M. El-Fouly ◽

E.F. El-Saadany ◽

M.M.A. Salama ◽

H.H. Zeineldin

Keyword(s):

Electricity Market ◽

Control Strategies ◽

Wind Generation ◽

Market Prices ◽

Generation Control

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The impact of industrial self-supply on Bavaria’s electricity system – effects on supply security and market prices

International Journal of Energy Sector Management ◽

10.1108/ijesm-11-2017-0009 ◽

2019 ◽

Vol 13 (2) ◽

pp. 450-466

Author(s):

Christopher Scheubel ◽

David Matthäus ◽

Gunther Friedl

Keyword(s):

Electricity Market ◽

Nuclear Power ◽

Fossil Fuels ◽

Transition Process ◽

Order Effect ◽

Market Prices ◽

Content Type ◽

Electricity Grid ◽

Electricity System ◽

The Impact

Purpose The purpose of this paper is to analyze the role of industrial self-supply in the transition process from centralized energy generation based on fossil fuels and nuclear power to decentralized supply based on renewable energies in the Bavarian electricity system. Design/methodology/approach To quantify effects on system and price stability, a model of the Bavarian electricity grid is created and used to simulate electricity system behavior during a 1-year period for scenarios that are characterized by parameter variations in industrial self-supply, nuclear power capacity, renewable power generation and the capacity of electricity imports. Findings The simulations show that industrial self-supply can reduce instances of maximum grid utilization by 23 per cent and, based on the merit-order effect, decrease electricity market prices by 1.90 and 5.03 €/MWh in the scenarios with and without nuclear power, respectively; these values represent 5.7 and 15.0 per cent of average market prices from 2014. Research limitations/implications The analysis shows that industrial self-supply can contribute to transforming the electricity system in a secure, sustainable and affordable manner. However, merit-order-based price effects have a limitation concerning the future applicability of results as quantified effects may not be permanent when the electricity system adapts. Originality/value This paper connects industrial self-supply and the merit-order effect within a nodal energy model. It provides insights into the relevant interdependencies and reciprocal effects by means of a simulation.

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Impact of Flow Based Market Coupling on the European Electricity Markets

NachhaltigkeitsManagementForum | Sustainability Management Forum ◽

10.1007/s00550-021-00520-w ◽

2021 ◽

Author(s):

Rafael Finck

Keyword(s):

Electricity Markets ◽

Electricity Market ◽

Western Europe ◽

Energy System ◽

Core Region ◽

Market Prices ◽

Coupling Constraints ◽

Net Export ◽

The Impact ◽

Market Coupling

AbstractFlow Based Market Coupling is the target model for determining exchange capacities in the internal European Electricity Market. It has been in operation in Central Western Europe since 2015 and is scheduled to be extended to the wider Core region in the near future. Exchange capacities have a significant impact on market prices, exchanges and the energy mix, thus also determining the CO$${}_{2}$$ 2 footprint of electricity generation in the system. Stakeholders therefore need to develop an understanding for the impact of Flow Based Market Coupling and the parameter choice, like the minimum exchange capacities introduced in 2020, on the market outcome. This article presents a framework to model Flow Based Market Coupling and analyse the impact of different levels of regulatory induced minimum trading capacities as well as the effect of the extension towards the Core region. Electricity prices, exchange positions and the number and nature of binding constraints in the market results under different market coupling scenarios are investigated. The results show that increased level of minimum trading capacities in CWE market coupling decrease the German net export position by up to 7 TW h or 23%, while French exports increase by up to 10 TW h or 9%. The different transfer capacity in the scenarios induce a price difference of up to 13%. Increased exchange capacities allow for more base load generation with the corresponding effects for the CO$${}_{2}$$ 2 emissions of the system. The nature of coupling constraints is highly dynamic and dependent on the system state, which makes the suitability of static NTC values in energy system scenarios questionable.

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