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A technical perspective on variability costs: Dependence on power variability and cross-correlations

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  • Roy, Sanjoy

Abstract

With power from integrated vRES added to electricity generated by conventional sources across a commitment interval, unexpected real-time changes in demand and generation may contribute substantial overheads to the optimal cost of energy (CoE). This paper presents analytical formulations and illustrative examples to focus on a significant fraction of the cost overheads, commonly referred to as variability costs. By contrast to studies that report a market perspective to the costs, the paper offers a technical perspective through an augmented electricity dispatch, and further takes into account cross-correlations between randomly changing power variables.

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  • Roy, Sanjoy, 2020. "A technical perspective on variability costs: Dependence on power variability and cross-correlations," Energy, Elsevier, vol. 198(C).
    • Handle: RePEc:eee:energy:v:198:y:2020:i:c:s0360544220304576
    DOI: 10.1016/j.energy.2020.117350
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