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Optimal portfolio-theory-based allocation of wind power: Taking into account cross-border transmission-capacity constraints

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  • Rombauts, Yannick
  • Delarue, Erik
  • D’haeseleer, William

Abstract

Allocating wind farms across different locations in different countries may reduce the variability of hourly wind power changes. Taking into account cross-border transmission-capacity constraints between countries can however decrease the effect of this diversification. A portfolio-theory-based model is developed that takes into account these cross-border transmission-capacity constraints when allocating wind power as efficient as possible across different locations.

Suggested Citation

  • Rombauts, Yannick & Delarue, Erik & D’haeseleer, William, 2011. "Optimal portfolio-theory-based allocation of wind power: Taking into account cross-border transmission-capacity constraints," Renewable Energy, Elsevier, vol. 36(9), pages 2374-2387.
    • Handle: RePEc:eee:renene:v:36:y:2011:i:9:p:2374-2387
    DOI: 10.1016/j.renene.2011.02.010
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    9. Shakouri, Mahmoud & Lee, Hyun Woo & Choi, Kunhee, 2015. "PACPIM: New decision-support model of optimized portfolio analysis for community-based photovoltaic investment," Applied Energy, Elsevier, vol. 156(C), pages 607-617.
    10. deLlano-Paz, Fernando & Calvo-Silvosa, Anxo & Antelo, Susana Iglesias & Soares, Isabel, 2017. "Energy planning and modern portfolio theory: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 77(C), pages 636-651.
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    13. Castro, Gabriel Malta & Klöckl, Claude & Regner, Peter & Schmidt, Johannes & Pereira, Amaro Olimpio, 2022. "Improvements to Modern Portfolio Theory based models applied to electricity systems," Energy Economics, Elsevier, vol. 111(C).
    14. Chu, Cheng-Ta & Hawkes, Adam D., 2020. "Optimal mix of climate-related energy in global electricity systems," Renewable Energy, Elsevier, vol. 160(C), pages 955-963.
    15. He, Y.X. & Xia, T. & Liu, Z.Y. & Zhang, T. & Dong, Z., 2013. "Evaluation of the capability of accepting large-scale wind power in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 19(C), pages 509-516.
    16. de-Llano Paz, Fernando & Antelo, Susana Iglesias & Calvo Silvosa, Anxo & Soares, Isabel, 2014. "The technological and environmental efficiency of the EU-27 power mix: An evaluation based on MPT," Energy, Elsevier, vol. 69(C), pages 67-81.
    17. Pérez Odeh, Rodrigo & Watts, David & Negrete-Pincetic, Matías, 2018. "Portfolio applications in electricity markets review: Private investor and manager perspective trends," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P1), pages 192-204.
    18. Bamooeifard, Alireza, 2020. "Future studies in Iran development plans for wind power, a system dynamics modeling approach," Renewable Energy, Elsevier, vol. 162(C), pages 1054-1064.
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    20. Chi Kong Chyong & Carmen Li & David Reiner & Fabien Roques, 2020. "A Portfolio approach to wind and solar deployment in Australia," Working Papers EPRG2022, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    21. Han, Chanok & Vinel, Alexander, 2022. "Reducing forecasting error by optimally pooling wind energy generation sources through portfolio optimization," Energy, Elsevier, vol. 239(PB).
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