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Integrating Intermittent Renewable Wind Generation - A Stochastic Multi-Market Electricity Model for the European Electricity Market

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  • Jan Abrell
  • Friedrich Kunz

Abstract

In northern Europe, wind energy has become a dominate renewable energy source, due to natural conditions and national support schemes. However, the uncertainty about wind generation affects existing network infrastructure and power production planning of generators, which cannot be fully diminished by wind forecasts. In this paper we develop a stochastic electricity market model to analyze the impact of uncertain wind generation on the different electricity markets as well as network congestion management. Stochastic programming techniques are used to incorporate uncertain wind generation. The technical characteristics of transporting electrical energy as well as power plants are explicitly taken into account. The consecutive clearing of the electricity markets is incorporated by a rolling planning procedure reflecting the market regime of European markets. The model is applied to the German electricity system covering one week. Two different approaches of considering uncertain wind generation are analyzed and compared to a deterministic approach. The results reveal that the flexibility of generation dispatch is increased either by using more flexible generation technologies or by operating rather inflexible technologies under part-load conditions. Copyright Springer Science+Business Media New York 2015

Suggested Citation

  • Jan Abrell & Friedrich Kunz, 2015. "Integrating Intermittent Renewable Wind Generation - A Stochastic Multi-Market Electricity Model for the European Electricity Market," Networks and Spatial Economics, Springer, vol. 15(1), pages 117-147, March.
  • Handle: RePEc:kap:netspa:v:15:y:2015:i:1:p:117-147
    DOI: 10.1007/s11067-014-9272-4
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    More about this item

    Keywords

    Electricity markets; Unit commitment; Stochasticity; Renewable energy; Transmission network;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • D41 - Microeconomics - - Market Structure, Pricing, and Design - - - Perfect Competition
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities

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