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Network Constrained Wind Integration: An Optimal Cost Approach

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  • Maddaloni, Jesse D.
  • Rowe, Andrew M.
  • van Kooten, G. Cornelis

Abstract

Planning electricity supply is important because power demand continues to increase while there is a concomitant desire to increase reliance on renewable sources. Extant research pays particular attention to highly variable, low-carbon energy sources such as wind and small-scale hydroelectric power. Models generally employ only a simple load levelling technique, ensuring that generation meets demand in every period. The current research considers the power transmission system as well as load levelling. A network model is developed to simulate the integration of highly variable non-dispatchable power into an electrical grid that relies on traditional generation sources, while remaining within the network’s operating constraints. The model minimizes a quadratic cost function over two periods of 336 hours, with periods representing low (summer) and high (winter) demand, subject to various linear constraints. The model is numerically solved using Matlab and GAMS software environments. Results indicate that, even for a grid heavily dependent on hydroelectricity, the addition of wind power can create difficulties, with system costs increasing with wind penetration, sometimes significantly.

Suggested Citation

  • Maddaloni, Jesse D. & Rowe, Andrew M. & van Kooten, G. Cornelis, 2006. "Network Constrained Wind Integration: An Optimal Cost Approach," Working Papers 37034, University of Victoria, Resource Economics and Policy.
    • Handle: RePEc:ags:uvicwp:37034
    DOI: 10.22004/ag.econ.37034
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    References listed on IDEAS

    as
    1. DeCarolis, Joseph F. & Keith, David W., 2006. "The economics of large-scale wind power in a carbon constrained world," Energy Policy, Elsevier, vol. 34(4), pages 395-410, March.
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    3. Kennedy, Scott, 2005. "Wind power planning: assessing long-term costs and benefits," Energy Policy, Elsevier, vol. 33(13), pages 1661-1675, September.
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    More about this item

    Keywords

    Environmental Economics and Policy; Resource /Energy Economics and Policy;

    JEL classification:

    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources

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