Advanced Search
MyIDEAS: Login to save this paper or follow this series

Wind power integration, negative prices and power system flexibility - An empirical analysis of extreme events in Germany

Contents:

Author Info

  • Nicolosi, S.

Abstract

This article analyses the flexibility of the German power market with respect to the integration of an increasing share of electricity from renewable energy sources. Flexibility limiting system components, which cause negative prices are explained and illustrated for the German market. Then, the decision of the European Energy Exchange in Leipzig (EEX) to allow negative price bids is explained. Empirical data show the flexibility of conventional generating capacities in Germany during the considered time frame from October 2008 until November 2009. Of the 71 hours with negative spot prices, ten hours were significantly negative with prices of at least -100€/MWh. These extreme hours are analysed in greater detail by the examination of the different system components. Thereby, load, wind power infeed and conventional generation by fuel type are observed as well as the market for negative tertiary reserve as indicators for market tightness. It will be shown that although the market situations were severe, under current conditions it could have been much worse under certain circumstances. Furthermore, the long-run implications of an increasing RES-E share on the conventional generation capacity are discussed. The article concludes with an outlook on additional power system flexibility options.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://mpra.ub.uni-muenchen.de/31834/
File Function: original version
Download Restriction: no

Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 31834.

as in new window
Length:
Date of creation: Mar 2010
Date of revision:
Handle: RePEc:pra:mprapa:31834

Contact details of provider:
Postal: Schackstr. 4, D-80539 Munich, Germany
Phone: +49-(0)89-2180-2219
Fax: +49-(0)89-2180-3900
Web page: http://mpra.ub.uni-muenchen.de
More information through EDIRC

Related research

Keywords: Electricity markets; negative prices; renewable electricity integration; wind power;

Find related papers by JEL classification:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Brunekreeft, G. & Neuhoff, K. & Newbery, D., 2004. "Electricity transmission: an overview of the current debate," Cambridge Working Papers in Economics, Faculty of Economics, University of Cambridge 0463, Faculty of Economics, University of Cambridge.
  2. Cramton, Peter & Stoft, Steven, 2008. "Forward reliability markets: Less risk, less market power, more efficiency," Utilities Policy, Elsevier, Elsevier, vol. 16(3), pages 194-201, September.
  3. Batlle, Carlos & Pérez-Arriaga, Ignacio J., 2008. "Design criteria for implementing a capacity mechanism in deregulated electricity markets," Utilities Policy, Elsevier, Elsevier, vol. 16(3), pages 184-193, September.
  4. Peter Cramton, 2003. "Competitive Bidding Behavior in Uniform-Price Auction Markets," Papers of Peter Cramton 03ferc1, University of Maryland, Department of Economics - Peter Cramton, revised 2003.
  5. Richard J. Green, 2008. "Electricity Wholesale Markets: Designs Now and in a Low-carbon Future," The Energy Journal, International Association for Energy Economics, International Association for Energy Economics, vol. 0(Special I), pages 95-124.
  6. Sensfuß, Frank & Ragwitz, Mario & Genoese, Massimo, 2008. "The merit-order effect: A detailed analysis of the price effect of renewable electricity generation on spot market prices in Germany," Energy Policy, Elsevier, Elsevier, vol. 36(8), pages 3076-3084, August.
  7. Weber, Christoph, 2010. "Adequate intraday market design to enable the integration of wind energy into the European power systems," Energy Policy, Elsevier, Elsevier, vol. 38(7), pages 3155-3163, July.
  8. Lise, Wietze & Hobbs, Benjamin F. & Hers, Sebastiaan, 2008. "Market power in the European electricity market--The impacts of dry weather and additional transmission capacity," Energy Policy, Elsevier, Elsevier, vol. 36(4), pages 1331-1343, April.
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 in new window

Cited by:
  1. Dominique Finon & Fabien Roques, 2013. "European Electricity Market Reforms: The "Visible Hand" of Public Coordination," Economics of Energy & Environmental Policy, International Association for Energy Economics, International Association for Energy Economics, vol. 0(Number 2).
  2. Peeter Pikk & Marko Viiding, 2013. "The dangers of marginal cost based electricity pricing," Baltic Journal of Economics, Baltic International Centre for Economic Policy Studies, Baltic International Centre for Economic Policy Studies, vol. 13(1), pages 49-62, July.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:31834. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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