IDEAS home Printed from https://ideas.repec.org/a/eee/rensus/v70y2017icp757-768.html
   My bibliography  Save this article

Gas generation and wind power: A review of unlikely allies in the United Kingdom and Ireland

Author

Listed:
  • Devlin, Joseph
  • Li, Kang
  • Higgins, Paraic
  • Foley, Aoife

Abstract

No single solution currently exists to achieve the utopian desire of zero fossil fuel electricity generation. Until such time, it is evident that the energy mix will contain a large variation in stochastic and intermittent sources of renewable energy such as wind power. The increasing prominence of wind power in pursuit of legally binding European energy targets enables policy makers and conventional generating companies to plan for the unique challenges such a natural resource presents. This drive for wind has been highly beneficial in terms of security of energy supply and reducing greenhouse gas emissions. However, it has created an unusual ally in natural gas. This paper outlines the suitability and challenges faced by gas generating units in their utilisation as key assets for renewable energy integration and the transition to a low carbon future. The Single Electricity Market of the Republic of Ireland and Northern Ireland and the British Electricity Transmission Trading Agreement Market are the backdrop to this analysis. Both of these energy markets have a reliance on gas generation matching the proliferation of wind power. The unlikely and mostly ignored relationship between natural gas generation and wind power due to policy decisions and market forces is the necessity of gas to act as a bridging fuel. This review finds gas generation to be crucially important to the continued growth of renewable energy. Additionally, it is suggested that power market design should adequately reward the flexibility required to securely operate a power system with high penetrations of renewable energy, which in most cases is provided by gas generation.

Suggested Citation

  • Devlin, Joseph & Li, Kang & Higgins, Paraic & Foley, Aoife, 2017. "Gas generation and wind power: A review of unlikely allies in the United Kingdom and Ireland," Renewable and Sustainable Energy Reviews, Elsevier, vol. 70(C), pages 757-768.
  • Handle: RePEc:eee:rensus:v:70:y:2017:i:c:p:757-768
    DOI: 10.1016/j.rser.2016.11.256
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S136403211631036X
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.rser.2016.11.256?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Tzimas, Evangelos & Mercier, Arnaud & Cormos, Calin-Cristian & Peteves, Stathis D., 2007. "Trade-off in emissions of acid gas pollutants and of carbon dioxide in fossil fuel power plants with carbon capture," Energy Policy, Elsevier, vol. 35(8), pages 3991-3998, August.
    2. Hach, Daniel & Chyong, Chi Kong & Spinler, Stefan, 2016. "Capacity market design options: A dynamic capacity investment model and a GB case study," European Journal of Operational Research, Elsevier, vol. 249(2), pages 691-705.
    3. Benz, Eva & Trück, Stefan, 2009. "Modeling the price dynamics of CO2 emission allowances," Energy Economics, Elsevier, vol. 31(1), pages 4-15, January.
    4. Schmidt, Tobias S. & Schneider, Malte & Hoffmann, Volker H., 2012. "Decarbonising the power sector via technological change – differing contributions from heterogeneous firms," Energy Policy, Elsevier, vol. 43(C), pages 466-479.
    5. Kondziella, Hendrik & Bruckner, Thomas, 2016. "Flexibility requirements of renewable energy based electricity systems – a review of research results and methodologies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 53(C), pages 10-22.
    6. Newbery, David, 2016. "Missing money and missing markets: Reliability, capacity auctions and interconnectors," Energy Policy, Elsevier, vol. 94(C), pages 401-410.
    7. Di Cosmo, Valeria & Malaguzzi Valeri, Laura, 2014. "The incentive to invest in thermal plants in the presence of wind generation," Energy Economics, Elsevier, vol. 43(C), pages 306-315.
    8. Foley, A.M. & Ó Gallachóir, B.P. & McKeogh, E.J. & Milborrow, D. & Leahy, P.G., 2013. "Addressing the technical and market challenges to high wind power integration in Ireland," Renewable and Sustainable Energy Reviews, Elsevier, vol. 19(C), pages 692-703.
    9. David Popp, 2010. "Innovation and Climate Policy," NBER Working Papers 15673, National Bureau of Economic Research, Inc.
    10. Panagiotidis, Theodore & Rutledge, Emilie, 2007. "Oil and gas markets in the UK: Evidence from a cointegrating approach," Energy Economics, Elsevier, vol. 29(2), pages 329-347, March.
    11. Calbick, K.S. & Gunton, Thomas, 2014. "Differences among OECD countries’ GHG emissions: Causes and policy implications," Energy Policy, Elsevier, vol. 67(C), pages 895-902.
    12. Asche, Frank & Oglend, Atle & Osmundsen, Petter, 2012. "Gas versus oil prices the impact of shale gas," Energy Policy, Elsevier, vol. 47(C), pages 117-124.
    13. Pettersson, Fredrik & Söderholm, Patrik & Lundmark, Robert, 2012. "Fuel switching and climate and energy policies in the European power generation sector: A generalized Leontief model," Energy Economics, Elsevier, vol. 34(4), pages 1064-1073.
    14. Chertkov, Michael & Backhaus, Scott & Lebedev, Vladimir, 2015. "Cascading of fluctuations in interdependent energy infrastructures: Gas-grid coupling," Applied Energy, Elsevier, vol. 160(C), pages 541-551.
    15. Huber, Matthias & Dimkova, Desislava & Hamacher, Thomas, 2014. "Integration of wind and solar power in Europe: Assessment of flexibility requirements," Energy, Elsevier, vol. 69(C), pages 236-246.
    16. Hirth, Lion & Ueckerdt, Falko, 2013. "Redistribution effects of energy and climate policy: The electricity market," Energy Policy, Elsevier, vol. 62(C), pages 934-947.
    17. Lohwasser, Richard & Madlener, Reinhard, 2012. "Economics of CCS for coal plants: Impact of investment costs and efficiency on market diffusion in Europe," Energy Economics, Elsevier, vol. 34(3), pages 850-863.
    18. Hittinger, Eric & Lueken, Roger, 2015. "Is inexpensive natural gas hindering the grid energy storage industry?," Energy Policy, Elsevier, vol. 87(C), pages 140-152.
    19. Keyaerts, Nico & Delarue, Erik & Rombauts, Yannick & D’haeseleer, William, 2014. "Impact of unpredictable renewables on gas-balancing design in Europe," Applied Energy, Elsevier, vol. 119(C), pages 266-277.
    20. Nian, Victor & Chou, S.K. & Su, Bin & Bauly, John, 2014. "Life cycle analysis on carbon emissions from power generation – The nuclear energy example," Applied Energy, Elsevier, vol. 118(C), pages 68-82.
    21. Troy, Niamh & Denny, Eleanor & O'Malley, Mark, 2010. "Base-load cycling on a system with significant wind penetration," MPRA Paper 34848, University Library of Munich, Germany.
    22. Keatley, P. & Shibli, A. & Hewitt, N.J., 2013. "Estimating power plant start costs in cyclic operation," Applied Energy, Elsevier, vol. 111(C), pages 550-557.
    23. Lund, Peter D. & Lindgren, Juuso & Mikkola, Jani & Salpakari, Jyri, 2015. "Review of energy system flexibility measures to enable high levels of variable renewable electricity," Renewable and Sustainable Energy Reviews, Elsevier, vol. 45(C), pages 785-807.
    24. Dieckhöner, Caroline & Lochner, Stefan & Lindenberger, Dietmar, 2013. "European natural gas infrastructure: The impact of market developments on gas flows and physical market integration," Applied Energy, Elsevier, vol. 102(C), pages 994-1003.
    25. Irene Vos, 2012. "The Impact of Wind Power on European Natural Gas Markets," IEA Energy Papers 2012/1, OECD Publishing.
    26. Mc Garrigle, E.V. & Leahy, P.G., 2015. "Quantifying the value of improved wind energy forecasts in a pool-based electricity market," Renewable Energy, Elsevier, vol. 80(C), pages 517-524.
    27. Asche, Frank & Misund, Bård & Sikveland, Marius, 2013. "The relationship between spot and contract gas prices in Europe," Energy Economics, Elsevier, vol. 38(C), pages 212-217.
    28. Shafiullah, G.M. & M.T. Oo, Amanullah & Shawkat Ali, A.B.M. & Wolfs, Peter, 2013. "Potential challenges of integrating large-scale wind energy into the power grid–A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 20(C), pages 306-321.
    29. Hobæk Haff, Ingrid & Lindqvist, Ola & Løland, Anders, 2008. "Risk premium in the UK natural gas forward market," Energy Economics, Elsevier, vol. 30(5), pages 2420-2440, September.
    30. Tzimas, Evangelos & Georgakaki, Aliki, 2010. "A long-term view of fossil-fuelled power generation in Europe," Energy Policy, Elsevier, vol. 38(8), pages 4252-4264, August.
    31. Bilgin, Mert, 2009. "Geopolitics of European natural gas demand: Supplies from Russia, Caspian and the Middle East," Energy Policy, Elsevier, vol. 37(11), pages 4482-4492, November.
    32. Steggals, Will & Gross, Robert & Heptonstall, Philip, 2011. "Winds of change: How high wind penetrations will affect investment incentives in the GB electricity sector," Energy Policy, Elsevier, vol. 39(3), pages 1389-1396, March.
    33. Qadrdan, Meysam & Chaudry, Modassar & Wu, Jianzhong & Jenkins, Nick & Ekanayake, Janaka, 2010. "Impact of a large penetration of wind generation on the GB gas network," Energy Policy, Elsevier, vol. 38(10), pages 5684-5695, October.
    34. Rogge, Karoline S. & Hoffmann, Volker H., 2010. "The impact of the EU ETS on the sectoral innovation system for power generation technologies - Findings for Germany," Energy Policy, Elsevier, vol. 38(12), pages 7639-7652, December.
    35. Higgins, P. & Foley, A.M. & Douglas, R. & Li, K., 2014. "Impact of offshore wind power forecast error in a carbon constraint electricity market," Energy, Elsevier, vol. 76(C), pages 187-197.
    36. Philipp Koenig, 2012. "The effect of LNG on the relationship between UK and Continental European natural gas markets," Working Papers EPRG 1225, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    37. Tuohy, A. & O'Malley, M., 2011. "Pumped storage in systems with very high wind penetration," Energy Policy, Elsevier, vol. 39(4), pages 1965-1974, April.
    38. David Popp, 2010. "Innovation and Climate Policy," Annual Review of Resource Economics, Annual Reviews, vol. 2(1), pages 275-298, October.
    39. Remme, Uwe & Blesl, Markus & Fahl, Ulrich, 2008. "Future European gas supply in the resource triangle of the Former Soviet Union, the Middle East and Northern Africa," Energy Policy, Elsevier, vol. 36(5), pages 1622-1641, May.
    40. McConnell, Dylan & Forcey, Tim & Sandiford, Mike, 2015. "Estimating the value of electricity storage in an energy-only wholesale market," Applied Energy, Elsevier, vol. 159(C), pages 422-432.
    41. Mc Garrigle, E.V. & Deane, J.P. & Leahy, P.G., 2013. "How much wind energy will be curtailed on the 2020 Irish power system?," Renewable Energy, Elsevier, vol. 55(C), pages 544-553.
    42. Glynn, James & Chiodi, Alessandro & Gargiulo, Maurizio & Deane, J.P. & Bazilian, Morgan & Gallachóir, Brian Ó, 2014. "Energy Security Analysis: The case of constrained oil supply for Ireland," Energy Policy, Elsevier, vol. 66(C), pages 312-325.
    43. Koenig, P., 2012. "The effect of LNG on the rleationship between UK and Continental European natural gas markets," Cambridge Working Papers in Economics 1253, Faculty of Economics, University of Cambridge.
    44. Foley, Aoife M. & Leahy, Paul G. & Marvuglia, Antonino & McKeogh, Eamon J., 2012. "Current methods and advances in forecasting of wind power generation," Renewable Energy, Elsevier, vol. 37(1), pages 1-8.
    45. Bass, Robert J. & Malalasekera, Weeratunge & Willmot, Peter & Versteeg, Henk K., 2011. "The impact of variable demand upon the performance of a combined cycle gas turbine (CCGT) power plant," Energy, Elsevier, vol. 36(4), pages 1956-1965.
    46. Sahin, Cem & Shahidehpour, Mohammad & Erkmen, Ismet, 2012. "Generation risk assessment in volatile conditions with wind, hydro, and natural gas units," Applied Energy, Elsevier, vol. 96(C), pages 4-11.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Frate, Guido Francesco & Ferrari, Lorenzo & Desideri, Umberto, 2021. "Energy storage for grid-scale applications: Technology review and economic feasibility analysis," Renewable Energy, Elsevier, vol. 163(C), pages 1754-1772.
    2. Emblemsvåg, Jan, 2022. "Wind energy is not sustainable when balanced by fossil energy," Applied Energy, Elsevier, vol. 305(C).
    3. Yao, Yao & Huang, Gordon & An, Chunjiang & Chen, Xiujuan & Zhang, Peng & Xin, Xiaying & Jian Shen, & Agnew, Joy, 2020. "Anaerobic digestion of livestock manure in cold regions: Technological advancements and global impacts," Renewable and Sustainable Energy Reviews, Elsevier, vol. 119(C).
    4. Gianfreda, Angelica & Parisio, Lucia & Pelagatti, Matteo, 2018. "A review of balancing costs in Italy before and after RES introduction," Renewable and Sustainable Energy Reviews, Elsevier, vol. 91(C), pages 549-563.
    5. Al kez, Dlzar & Foley, Aoife M. & McIlwaine, Neil & Morrow, D. John & Hayes, Barry P. & Zehir, M. Alparslan & Mehigan, Laura & Papari, Behnaz & Edrington, Chris S. & Baran, Mesut, 2020. "A critical evaluation of grid stability and codes, energy storage and smart loads in power systems with wind generation," Energy, Elsevier, vol. 205(C).
    6. Bai, Bo & Xiong, Siqin & Song, Bo & Xiaoming, Ma, 2019. "Economic analysis of distributed solar photovoltaics with reused electric vehicle batteries as energy storage systems in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 109(C), pages 213-229.
    7. Ilaria Delponte & Corrado Schenone, 2020. "RES Implementation in Urban Areas: An Updated Overview," Sustainability, MDPI, vol. 12(1), pages 1-14, January.
    8. Alabi, Tobi Michael & Aghimien, Emmanuel I. & Agbajor, Favour D. & Yang, Zaiyue & Lu, Lin & Adeoye, Adebusola R. & Gopaluni, Bhushan, 2022. "A review on the integrated optimization techniques and machine learning approaches for modeling, prediction, and decision making on integrated energy systems," Renewable Energy, Elsevier, vol. 194(C), pages 822-849.
    9. A. Gürhan Kök & Kevin Shang & Şafak Yücel, 2020. "Investments in Renewable and Conventional Energy: The Role of Operational Flexibility," Manufacturing & Service Operations Management, INFORMS, vol. 22(5), pages 925-941, September.
    10. Ma, Ting & Guo, Zhixiong & Lin, Mei & Wang, Qiuwang, 2021. "Recent trends on nanofluid heat transfer machine learning research applied to renewable energy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 138(C).
    11. Long, Aoife & Murphy, Jerry D., 2019. "Can green gas certificates allow for the accurate quantification of the energy supply and sustainability of biomethane from a range of sources for renewable heat and or transport?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 115(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Teirilä, Juha, 2020. "The value of the nuclear power plant fleet in the German power market under the expansion of fluctuating renewables," Energy Policy, Elsevier, vol. 136(C).
    2. Devlin, Joseph & Li, Kang & Higgins, Paraic & Foley, Aoife, 2016. "The importance of gas infrastructure in power systems with high wind power penetrations," Applied Energy, Elsevier, vol. 167(C), pages 294-304.
    3. de Mars, Patrick & O’Sullivan, Aidan & Keppo, Ilkka, 2020. "Estimating the impact of variable renewable energy on base-load cycling in the GB power system," Energy, Elsevier, vol. 195(C).
    4. Blanco, Herib & Faaij, André, 2018. "A review at the role of storage in energy systems with a focus on Power to Gas and long-term storage," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P1), pages 1049-1086.
    5. Lund, Peter D. & Lindgren, Juuso & Mikkola, Jani & Salpakari, Jyri, 2015. "Review of energy system flexibility measures to enable high levels of variable renewable electricity," Renewable and Sustainable Energy Reviews, Elsevier, vol. 45(C), pages 785-807.
    6. Arjuna Nebel & Christine Krüger & Tomke Janßen & Mathieu Saurat & Sebastian Kiefer & Karin Arnold, 2020. "Comparison of the Effects of Industrial Demand Side Management and Other Flexibilities on the Performance of the Energy System," Energies, MDPI, vol. 13(17), pages 1-20, August.
    7. Thomas Kremser & Margarethe Rammerstorfer, 2017. "Predictive Performance and Bias: Evidence from Natural Gas Markets," Journal of Management and Sustainability, Canadian Center of Science and Education, vol. 7(2), pages 1-26, June.
    8. Martin Larsson, 2017. "EU Emissions Trading: Policy-Induced Innovation, or Business as Usual? Findings from Company Case Studies in the Republic of Croatia," Working Papers 1705, The Institute of Economics, Zagreb.
    9. Kotowicz, Janusz & Bartela, Łukasz & Węcel, Daniel & Dubiel, Klaudia, 2017. "Hydrogen generator characteristics for storage of renewably-generated energy," Energy, Elsevier, vol. 118(C), pages 156-171.
    10. Andrychowicz, Mateusz & Olek, Blazej & Przybylski, Jakub, 2017. "Review of the methods for evaluation of renewable energy sources penetration and ramping used in the Scenario Outlook and Adequacy Forecast 2015. Case study for Poland," Renewable and Sustainable Energy Reviews, Elsevier, vol. 74(C), pages 703-714.
    11. Foley, A.M. & Ó Gallachóir, B.P. & McKeogh, E.J. & Milborrow, D. & Leahy, P.G., 2013. "Addressing the technical and market challenges to high wind power integration in Ireland," Renewable and Sustainable Energy Reviews, Elsevier, vol. 19(C), pages 692-703.
    12. del Río, Pablo, 2012. "The dynamic efficiency of feed-in tariffs: The impact of different design elements," Energy Policy, Elsevier, vol. 41(C), pages 139-151.
    13. Eser, Patrick & Singh, Antriksh & Chokani, Ndaona & Abhari, Reza S., 2016. "Effect of increased renewables generation on operation of thermal power plants," Applied Energy, Elsevier, vol. 164(C), pages 723-732.
    14. Stinner, Sebastian & Huchtemann, Kristian & Müller, Dirk, 2016. "Quantifying the operational flexibility of building energy systems with thermal energy storages," Applied Energy, Elsevier, vol. 181(C), pages 140-154.
    15. Güner, Yusuf Emre, 2018. "The improved screening curve method regarding existing units," European Journal of Operational Research, Elsevier, vol. 264(1), pages 310-326.
    16. Mauro Lafratta & Matthew Leach & Rex B. Thorpe & Mark Willcocks & Eve Germain & Sabeha K. Ouki & Achame Shana & Jacquetta Lee, 2021. "Economic and Carbon Costs of Electricity Balancing Services: The Need for Secure Flexible Low-Carbon Generation," Energies, MDPI, vol. 14(16), pages 1-21, August.
    17. Mc Garrigle, E.V. & Leahy, P.G., 2015. "Quantifying the value of improved wind energy forecasts in a pool-based electricity market," Renewable Energy, Elsevier, vol. 80(C), pages 517-524.
    18. Tilmann Rave & Ursula Triebswetter & Johann Wackerbauer, 2013. "Koordination von Innovations-, Energie- und Umweltpolitik," ifo Forschungsberichte, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 61.
    19. Pierro, Marco & Perez, Richard & Perez, Marc & Moser, David & Cornaro, Cristina, 2021. "Imbalance mitigation strategy via flexible PV ancillary services: The Italian case study," Renewable Energy, Elsevier, vol. 179(C), pages 1694-1705.
    20. Heggarty, Thomas & Bourmaud, Jean-Yves & Girard, Robin & Kariniotakis, Georges, 2020. "Quantifying power system flexibility provision," Applied Energy, Elsevier, vol. 279(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:rensus:v:70:y:2017:i:c:p:757-768. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/600126/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.