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The role of frequency regulation remuneration schemes in an energy matrix with high penetration of renewable energy

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  • Agostini, Claudio A.
  • Armijo, Franco A.
  • Silva, Carlos
  • Nasirov, Shahriyar

Abstract

Renewable energies (RE) in Chile and around the world have experienced outstanding growth in recent years. However, RE technologies such as solar photovoltaic and wind generate an imbalance between generation (offer) and consumption (demand) because of their intermittent and variable nature. Moreover, RE’s natural variability makes it necessary for conventional technologies to play a significant role in adjusting for the imbalance in the electric system frequency. As variable RE penetration grows, the need for frequency regulation will increase and, depending on how those higher costs are financed, this could lead to a disincentive to invest in conventional plants that provide that service.

Suggested Citation

  • Agostini, Claudio A. & Armijo, Franco A. & Silva, Carlos & Nasirov, Shahriyar, 2021. "The role of frequency regulation remuneration schemes in an energy matrix with high penetration of renewable energy," Renewable Energy, Elsevier, vol. 171(C), pages 1097-1114.
    • Handle: RePEc:eee:renene:v:171:y:2021:i:c:p:1097-1114
    DOI: 10.1016/j.renene.2021.02.167
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    2. Grover, Himanshu & Verma, Ashu & Bhatti, T.S., 2022. "DOBC-based frequency & voltage regulation strategy for PV-diesel hybrid microgrid during islanding conditions," Renewable Energy, Elsevier, vol. 196(C), pages 883-900.
    3. Yuan, Wenlin & Xin, Wenpeng & Su, Chengguo & Cheng, Chuntian & Yan, Denghua & Wu, Zening, 2022. "Cross-regional integrated transmission of wind power and pumped-storage hydropower considering the peak shaving demands of multiple power grids," Renewable Energy, Elsevier, vol. 190(C), pages 1112-1126.
    4. Kamali Saraji, Mahyar & Aliasgari, Elahe & Streimikiene, Dalia, 2023. "Assessment of the challenges to renewable energy technologies adoption in rural areas: A Fermatean CRITIC-VIKOR approach," Technological Forecasting and Social Change, Elsevier, vol. 189(C).
    5. Kheshti, Mostafa & Zhao, Xiaowei & Liang, Ting & Nie, Binjian & Ding, Yulong & Greaves, Deborah, 2022. "Liquid air energy storage for ancillary services in an integrated hybrid renewable system," Renewable Energy, Elsevier, vol. 199(C), pages 298-307.
    6. Jiang, Sufan & Wu, Chuanshen & Gao, Shan & Pan, Guangsheng & Liu, Yu & Zhao, Xin & Wang, Sicheng, 2022. "Robust frequency risk-constrained unit commitment model for AC-DC system considering wind uncertainty," Renewable Energy, Elsevier, vol. 195(C), pages 395-406.
    7. Rehman, Obaid Ur & Khan, Shahid A. & Javaid, Nadeem, 2021. "Decoupled building-to-transmission-network for frequency support in PV systems dominated grid," Renewable Energy, Elsevier, vol. 178(C), pages 930-945.

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