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Curtailing Intermittent Generation in Electrical Systems

Author

Listed:
  • Owen Q. Wu

    (Stephen M. Ross School of Business, University of Michigan, Ann Arbor, Michigan 48109)

  • Roman Kapuscinski

    (Stephen M. Ross School of Business, University of Michigan, Ann Arbor, Michigan 48109)

Abstract

Energy generation from intermittent renewable sources introduces additional variability into electrical systems, resulting in a higher cost of balancing against the increased variabilities. Ways to balance demand and supply for electricity include using flexible generation resources, storage operations, and curtailing intermittent generation. This paper focuses on the operational and environmental impact of curtailing intermittent generation. We construct a stochastic dynamic optimization model that captures the critical components of the system operating cost and analyze how various generation resources should operate with and without curtailing intermittent generation. We find that the system cost reduction per unit of curtailed energy is consistently significant and the presence of storage may increase the cost saving per unit of curtailed energy. We also find that curtailing intermittent generation often leads to system emission reductions.

Suggested Citation

  • Owen Q. Wu & Roman Kapuscinski, 2013. "Curtailing Intermittent Generation in Electrical Systems," Manufacturing & Service Operations Management, INFORMS, vol. 15(4), pages 578-595, October.
    • Handle: RePEc:inm:ormsom:v:15:y:2013:i:4:p:578-595
    DOI: 10.1287/msom.2013.0446
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    References listed on IDEAS

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    Cited by:

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    13. Goodarzi, Shadi & Perera, H. Niles & Bunn, Derek, 2019. "The impact of renewable energy forecast errors on imbalance volumes and electricity spot prices," Energy Policy, Elsevier, vol. 134(C).
    14. Alexandar Angelus, 2021. "Distributed Renewable Power Generation and Implications for Capacity Investment and Electricity Prices," Production and Operations Management, Production and Operations Management Society, vol. 30(12), pages 4614-4634, December.
    15. Alessio Trivella & Danial Mohseni-Taheri & Selvaprabu Nadarajah, 2023. "Meeting Corporate Renewable Power Targets," Management Science, INFORMS, vol. 69(1), pages 491-512, January.
    16. Nur Sunar & Jayashankar M. Swaminathan, 2021. "Net-Metered Distributed Renewable Energy: A Peril for Utilities?," Management Science, INFORMS, vol. 67(11), pages 6716-6733, November.
    17. Panos Kouvelis & Hirofumi Matsuo & Yixuan Xiao & Quan Yuan, 2023. "Long‐term service agreement in electricity supply chain with renewable energy penetration," Production and Operations Management, Production and Operations Management Society, vol. 32(6), pages 1830-1845, June.
    18. Mak, Ho-Yin & Shen, Zuo-Jun Max, 2016. "Integrated Modeling for Location Analysis," Foundations and Trends(R) in Technology, Information and Operations Management, now publishers, vol. 9(1-2), pages 1-152, October.
    19. Yangfang (Helen) Zhou & Alan Scheller-Wolf & Nicola Secomandi & Stephen Smith, 2016. "Electricity Trading and Negative Prices: Storage vs. Disposal," Management Science, INFORMS, vol. 62(3), pages 880-898, March.
    20. Shanshan Hu & Gilvan C. Souza & Mark E. Ferguson & Wenbin Wang, 2015. "Capacity Investment in Renewable Energy Technology with Supply Intermittency: Data Granularity Matters!," Manufacturing & Service Operations Management, INFORMS, vol. 17(4), pages 480-494, October.
    21. Ekaterina Abramova & Derek Bunn, 2021. "Optimal Daily Trading of Battery Operations Using Arbitrage Spreads," Energies, MDPI, vol. 14(16), pages 1-23, August.
    22. Guo, Qiaozhen & He, Qiao-Chu & Chen, Ying-Ju & Huang, Wei, 2021. "Poverty mitigation via solar panel adoption: Smart contracts and targeted subsidy design," Omega, Elsevier, vol. 102(C).
    23. Nur Sunar & John R. Birge, 2019. "Strategic Commitment to a Production Schedule with Uncertain Supply and Demand: Renewable Energy in Day-Ahead Electricity Markets," Management Science, INFORMS, vol. 65(2), pages 714-734, February.
    24. A. Gürhan Kök & Kevin Shang & Şafak Yücel, 2018. "Impact of Electricity Pricing Policies on Renewable Energy Investments and Carbon Emissions," Management Science, INFORMS, vol. 64(1), pages 131-148, January.

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