scholarly journals Modeling and Managing Joint Price and Volumetric Risk for Volatile Electricity Portfolios

Energies ◽  
2020 ◽  
Vol 13 (14) ◽  
pp. 3578 ◽  
Author(s):  
Johannes Kaufmann ◽  
Philipp Artur Kienscherf ◽  
Wolfgang Ketter
Keyword(s):  
Electricity Markets ◽  
Wind Farm ◽  
Bivariate Analysis ◽  
Renewable Energy Resources ◽  
Risk Premiums ◽  
Geographically Dispersed ◽  
Renewable Power ◽  
Market Risks ◽  
Copula Approach ◽  
Farm Operators

With an increasing share of renewable energy resources participating in electricity markets, there is a growing dependence between renewable power production and clearing prices of spot markets. Modeling this dependence using bivariate analysis can result in underestimation of market risks and adverse effects for stakeholders’ risk management. To enable an undistorted risk assessment, we are using a copula approach to precisely and jointly model electricity prices and infeed volumes of wind power. We simulate the case of wind farm operators using power purchase agreements (PPAs) to shift the price risk to an energy trader, who integrates the infeed into its portfolio. The trader’s portfolio can either be geographically dispersed, or highly localized. Based on its portfolio, the energy trader can decide to use derivatives such as futures to manage its risk exposure. The trader decides on future volumes subject to its portfolio’s inherent volatility. With a given risk averse strategy, a sufficiently diverse portfolio can help reduce the necessity to trade futures and subsequently the disadvantage of having to pay potential risk premiums.

scholarly journals Value-Centric Approaches to Design, Operations, and Maintenance of Wind Turbines

2013 ◽  
Author(s):  
Madhur A. Khadabadi ◽  
Karen B. Marais
Keyword(s):  
Wind Turbine ◽  
Condition Monitoring ◽  
Wind Farm ◽  
Net Present Value ◽  
Operating Cost ◽  
Optimal Level ◽  
Two Dimensions ◽  
Alternative View ◽  
Operations And Maintenance ◽  
Farm Operators

Wind turbine maintenance is emerging as an unexpectedly high component of turbine operating cost and there is an increasing interest in managing this cost. Here, we present an alternative view of maintenance as a value-driver, and develop an optimization algorithm to maximize the value delivered by maintenance. We model the stochastic deterioration of the turbine in two dimensions: the deterioration rate, and the extent of deterioration, and view maintenance as an operator that moves the turbine to an improved state in which it can generate more power and so earn more revenue. We then use a standard net present value (NPV) approach to calculate the value of the turbine by deducting the costs incurred in the installation, operations and maintenance from the revenue due to the power generation. The application of our model is demonstrated using several scenarios with a focus on blade deterioration. We evaluate the value delivered by implementing blade condition monitoring systems (CMS). A higher fidelity CMS allows the blade state to be determined with higher precision. With this improved state information, an optimal maintenance strategy can be derived. The difference between the value of the turbine with and without CMS can be interpreted as the value of the CMS. The results indicate that a higher fidelity (and more expensive) condition monitoring system (CMS) does not necessarily yield the highest value, and, that there is an optimal level of fidelity that results in maximum value. The contributions of this work are twofold. First, it is a practical approach to wind turbine valuation and operation that takes operating and market conditions into account. This work should therefore be useful to wind farm operators and investors. Second, it shows how the value of a CMS can be explicitly assessed. This work should therefore be useful to CMS manufacturers and wind farm operators.

scholarly journals Operational and financial performance of fossil fuel power plants within a high renewable energy mix

2017 ◽  
Vol 1 ◽  
pp. 2BIOTO ◽  
Author(s):  
Patrick Eser ◽  
Ndaona Chokani ◽  
Reza S. Abhari
Keyword(s):  
Renewable Energy ◽  
Financial Performance ◽  
Electricity Markets ◽  
Power Plants ◽  
Energy System ◽  
Renewable Power ◽  
High Penetration ◽  
Demand Models ◽  
Wide Range ◽  
Coal Power Plants

AbstractThe operation of conventional power plants in the 2030 high-renewable energy system of central Europe with high penetration of renewables is simulated in this work. Novel insights are gained in this work, since the generation, transmission and demand models have high geographic resolution, down to scale of individual units, with hourly temporal resolution. It is shown that the increases in the partload efficiency that optimize gas power plants’ financial performance in 2030 are highly dependent on the variability in power production of renewable power plants that are in close proximity to the gas power plants. While coal power plants are also cycled more, an increased baseload efficiency is more beneficial for their financial viability. Thus, there is a need for OEMs to offer a wide range of technology solutions to cover all customers’ needs in electricity markets with high penetrations of renewables. Therefore there is an increased investment risk for OEMs as they strive to match their customers’ future needs.

scholarly journals Energy Storage as a System Resource

2020 ◽  
Author(s):  
Ramon Leon ◽  
Maria Camila Ochoa ◽  
Alejandro Gutierrez
Keyword(s):  
Energy Storage ◽  
Electricity Markets ◽  
Large Scale ◽  
Business Models ◽  
Power Grids ◽  
Renewable Energy Resources ◽  
Grid Resource ◽  
Electric Industry ◽  
Sustainable Business ◽  
System Resource

The origins of the electric industry can be traced back to the invention of the battery. However, Energy Storage Systems (ESS) have never been considered as a part of the electricity supply chain. Even though there has been an increase of government mandated storage investments in power grids, market driven investments are still lacking sustainable business models. Now, with the possibility that cost reductions of the technology make it viable for widespread utilization, multiple efforts have been devoted by the academia and industry to design its incorporation into electricity markets. A large majority of the proposals have been devoted to develop mechanisms for their incorporation in ancillary services markets or for arbitrage, considering storage as another market player, both still with little success in providing sustainable benefits to energy consumers and investors alike. In this paper, we demonstrate that Large Scale Energy Storage excels when incorporated as a service provider in electricity markets. Our proposal considers ESS as a grid resource, available to the ISO to achieve the optimal mix of resources in the day ahead dispatch. We demonstrate that in the Colombian system, a large ESS used in this manner may achieve high benefit-cost ratios. The results also indicate that current market designs need to evolve in order to take better advantage of energy storage and renewable energy resources.

Optimized Dynamic Operation of Fixed-Speed Wind Farms Using Classical and Advanced Controllers

2020 ◽  
Vol 21 (2) ◽  
Author(s):  
Othman A. Omar ◽  
Niveen M. Badra ◽  
Mahmoud A. Attia ◽  
Ahmed Gad
Keyword(s):  
Renewable Energy ◽  
Output Power ◽  
Pitch Angle ◽  
Wind Farm ◽  
Wind Farms ◽  
Optimization Techniques ◽  
Energy Resources ◽  
Voltage Regulator ◽  
Renewable Energy Resources ◽  
Proportional Integral

AbstractElectric power systems are allowing higher penetration levels of renewable energy resources, mainly due to their environmental benefits. The majority of electrical energy generated by renewable energy resources is contributed by wind farms. However, the stochastic nature of these resources does not allow the installed generation capacities to be entirely utilized. In this context, this paper attempts to improve the performance of fixed-speed wind turbines. Turbines of this type have been already installed in some classical wind farms and it is not feasible to replace them with variable-speed ones before their lifetime ends. A fixed-speed turbine is typically connected to the electric grid with a Static VAR Compensator (SVC) across its terminal. For a better dynamic voltage response, the controller gains of a Proportional-Integral (PI) voltage regulator within the SVC will be tuned using a variety of optimization techniques to minimize the integrated square of error for the wind farm terminal voltage. Similarly, the controller gains of the turbine’s pitch angle may be tuned to enhance its dynamic output power performance. Simulation results, in this paper, show that the pitch angle controller causes a significant minimization in the integrated square of error for the wind farm output power. Finally, an advanced Proportional-Integral-Acceleration (PIA) voltage regulator controller has been proposed for the SVC. When the PIA control gains are optimized, they result in a better performance than the classical PI controller.

Evolution of the Transition to a World Driven by Renewable Energy

2010 ◽  
Vol 132 (2) ◽  
Author(s):  
Brian M. Fronk ◽  
Richard Neal ◽  
Srinivas Garimella
Keyword(s):  
Renewable Energy ◽  
Energy Consumption ◽  
Renewable Resource ◽  
The United States ◽  
Energy Utilization ◽  
Standard Of Living ◽  
Renewable Energy Resources ◽  
Renewable Power ◽  
Consumption Rates ◽  
Developed Nations

The world’s energy supplies will continue to be pressured as the population grows and the standard of living rises in the developing world. A move by the rest of the world toward energy consumption rates on par with the United States is most probably unsustainable. An examination of population trends, current energy utilization rates, and estimated reserves shows that a major worldwide transition to renewable resources is necessary in the next 100 years. This paper examines one possible scenario of how energy usage and renewable power generation must evolve during this time period. As the global standard of living increases, energy consumption in developing nations will begin to approach that of the developed world. A combination of energy conservation and efficiency improvements in developed nations will be needed to push the worldwide energy consumption to approximately 200 million Btu per person per year. Fossil fuel resources will be exhausted or become prohibitively expensive, necessitating the development of renewable energy resources. At this projected steady state population and energy consumption, the required contribution of each type of renewable resource can be calculated. Comparing these numbers to the current renewable capacities illustrates the enormous effort that must be made in the next century.

Renewable Energy Load Matching for Continental U.S.

2011 ◽  
Author(s):  
Walter Short ◽  
Victor Diakov
Keyword(s):  
Renewable Energy ◽  
Storage Capacity ◽  
Renewable Energy Resources ◽  
Energy Contribution ◽  
Load Matching ◽  
Geographically Dispersed ◽  
Energy Technologies ◽  
Western Us ◽  
Geographic Diversity ◽  
Optimal Mix

The variability of wind and solar energy technologies is perceived as a major obstacle to employing otherwise abundant renewable energy resources. Based on the available geographically dispersed data for the continental U.S. (excluding Alaska), we analyze to what extent the geographic diversity of these resources can offset their variability. We determine the best match to loads that can be achieved with wind power and photovoltaics with no transmission limitations. Without storage, wind and PV can meet up to 50% of loads in Western US. It is beneficial to build more wind than PV mostly because the wind contributes at night. When storage is available, the optimal mix has almost 75% as much nominal PV capacity as wind, with the PV energy contribution being 32% of the electricity produced from wind. With only 40 GW of storage (twice the pumped hydro storage capacity that already exists in the continental US), up to 82% of the load can be matched with wind and PV, while at the same time curtailing less than 10% of the renewable energy throughout the year.

scholarly journals Operational Simulation Environment for SCADA Integration of Renewable Resources

Energies ◽  
2020 ◽  
Vol 13 (6) ◽  
pp. 1333 ◽  
Author(s):  
Diego Francisco Larios ◽  
Enrique Personal ◽  
Antonio Parejo ◽  
Sebastián García ◽  
Antonio García ◽  
...  
Keyword(s):  
Renewable Energy ◽  
Power Systems ◽  
Power Plants ◽  
Wind Farm ◽  
Energy Generation ◽  
Generation Process ◽  
Renewable Power ◽  
Operator Tasks ◽  
Energy Assets ◽  
Renewable Energy Generation

The complexity of power systems is rising mainly due to the expansion of renewable energy generation. Due to the enormous variability and uncertainty associated with these types of resources, they require sophisticated planning tools so that they can be used appropriately. In this sense, several tools for the simulation of renewable energy assets have been proposed. However, they are traditionally focused on the simulation of the generation process, leaving the operation of these systems in the background. Conversely, more expert SCADA operators for the management of renewable power plants are required, but their training is not an easy task. SCADA operation is usually complex, due to the wide set of information available. In this sense, simulation or co-simulation tools can clearly help to reduce the learning curve and improve their skills. Therefore, this paper proposes a useful simulator based on a JavaScript engine that can be easily connected to any renewable SCADAs, making it possible to perform different simulated scenarios for novel operator training, as if it were a real facility. Using this tool, the administrators can easily program those scenarios allowing them to sort out the lack of support found in setting up facilities and training of novel operator tasks. Additionally, different renewable energy generation models that can be implemented in the proposed simulator are described. Later, as a use example of this tool, a study case is also performed. It proposes three different wind farm generation facility models, based on different turbine models: one with the essential generation turbine function obtained from the manufacturer curve, another with an empirical model using monotonic splines, and the last one adding the most important operational states, making it possible to demonstrate the usefulness of the proposed simulation tool.

Low-income resident’s preferences for the location of wind turbine farms in the Eastern Cape Province, South Africa

2015 ◽  
Vol 26 (3) ◽  
pp. 10-18 ◽  
Author(s):  
Jessica Hosking ◽  
Mario Du Preez ◽  
Gary Sharp
Keyword(s):  
South Africa ◽  
Low Income ◽  
Wind Farm ◽  
Eastern Cape ◽  
Renewable Energy Resources ◽  
Residential Areas ◽  
Choice Modelling ◽  
Development Scenarios ◽  
Local Municipality ◽  
Wind Energy Development

There is a general consensus that South Africa should be generating more power through harnessing renewable energy resources, such as wind power. However, there is no consensus with regard to the location of such generating projects. This paper describes a wind farm project proposed for development in the Kouga Local Municipality, reports low-income local residents’ preferences on its nature and applies choice modelling to analyse these preferences. A questionnaire was presented to each respondent, the discrete choice experiment component of the questionnaire included two different onshore wind energy development scenarios and a status quo option. The scenarios differed by the combination of four elements: the distance of the wind turbines from residential areas, job creation, the number of turbines and a subsidy allocated to each household.

A Levelized Cost of Energy (LCOE) Model for Wind Farms That Includes Power Purchase Agreement (PPA) Energy Delivery Limits

2016 ◽  
Author(s):  
Maira Bruck ◽  
Navid Goudarzi ◽  
Peter Sandborn
Keyword(s):  
Wind Farm ◽  
Cost Model ◽  
Wind Farms ◽  
Cost Models ◽  
Renewable Energy Resources ◽  
Supply Source ◽  
Levelized Cost ◽  
Cost Of Energy ◽  
Expected Performance ◽  
The Cost

The cost of energy is an increasingly important issue in the world as renewable energy resources are growing in demand. Performance-based energy contracts are designed to keep the price of energy as low as possible while controlling the risk for both parties (i.e., the Buyer and the Seller). Price and risk are often balanced using complex Power Purchase Agreements (PPAs). Since wind is not a constant supply source, to keep risk low, wind PPAs contain clauses that require the purchase and sale of energy to fall within reasonable limits. However, the existence of those limits also creates pressure on prices causing increases in the Levelized Cost of Energy (LCOE). Depending on the variation in capacity factor (CF), the power generator (the Seller) may find that the limitations on power purchasing given by the utility (the Buyer) are not favorable and will result in higher costs of energy than predicted. Existing cost models do not take into account energy purchase limitations or variations in energy production when calculating an LCOE. A new cost model is developed to evaluate the price of electricity from wind energy under a PPA contract. This study develops a method that an energy Seller can use to negotiate delivery penalties within their PPA. This model has been tested on a controlled wind farm and with real wind farm data. The results show that LCOE depends on the limitations on energy purchase within a PPA contract as well as the expected performance characteristics associated with wind farms.

scholarly journals Probabilistic Method for Estimating the Level of Reliability of Solar Photovoltaic Systems for Households in Ghana

2021 ◽  
pp. 38-53
Author(s):  
Ali Abubakar ◽  
Anas Musah ◽  
Frank Kofi Owusu ◽  
Isaac Afari Addo
Keyword(s):  
Power Systems ◽  
Design Methodology ◽  
Probabilistic Method ◽  
Solar Photovoltaic ◽  
Renewable Energy Resources ◽  
Pv System ◽  
Renewable Power ◽  
Backup System ◽  
Load Demand ◽  
Solar Batteries

Renewable Energy Resources have been identified among the most promising sources of harnessing power for industrial and household consumption but their power generations highly uctuate so building renewable power systems without critical reliability analysis might result in frequent blackouts in the power system. Therefore, in this paper, a robust, effective and ecient design approach is proposed to handle the reliability issues. The study involves a Mathematical modelling strategy of the PV system to estimate the total PV power produced and the Bottom-Up approach for predicting the household load demand. The reliability is defined in terms of Loss of Load Probability. The design methodology was validated with a University Household. The data used for the analysis consists of daily average global solar irradiance and load profiles. The results revealed that throughout the year, November-February is where the system seems to be more reliable. Also, the results indicated that without buck-up systems, the system would experience an average annual power loss of 17.8753% and thus, it is recommended that either solar batteries or the grid are used as backup system to achieve a complete level of reliability.

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