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The impact of RES-E policy setting on integration effects - A detailed analysis of capacity expansion and dispatch results

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  • Nicolosi, Marco

Abstract

The operation of the power markets is strongly aected by the presence of high shares of electricity from renewable energy sources (RES-E) in the market. Especially in times of high RES-E infeed, rm market situations can lead to extreme results, even to negative power prices. The behavior of RES-E in potential oversupply situations depends on the RES-E support scheme and in particular on the dened curtailment rules. By now, dierent curtailment rules have not been taken into account in long-run capacity expansion analyses. The present research investigates the impact of curtailment rules on the operation and the investment decisions through the utilization of "The High Temporal Resolution Electricity Market Analysis Model" (THEA) for the German power market under consideration of the neighboring countries. In general the results show that RES-E can provide exibility to the system if low burdens for curtailment are applied. This comes with the cost of lacking market signals which could trigger investments in exible generation capacities. However, if RES-E are forced into the market at any cost, the burden for consumers increases and the market signals high demand for alternative exibilities.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 31835.

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Date of creation: Apr 2011
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Handle: RePEc:pra:mprapa:31835

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Keywords: Power market modeling; RES-E integration; curtailment rules;

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References

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  1. Sáenz de Miera, Gonzalo & del Ri­o González, Pablo & Vizcaino, Ignacio, 2008. "Analysing the impact of renewable electricity support schemes on power prices: The case of wind electricity in Spain," Energy Policy, Elsevier, vol. 36(9), pages 3345-3359, September.
  2. Nicolosi, Marco, 2010. "Wind power integration and power system flexibility-An empirical analysis of extreme events in Germany under the new negative price regime," Energy Policy, Elsevier, vol. 38(11), pages 7257-7268, November.
  3. 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, vol. 36(8), pages 3076-3084, August.
  4. Batlle, Carlos & Vazquez, Carlos & Rivier, Michel & Perez-Arriaga, Ignacio J., 2007. "Enhancing power supply adequacy in Spain: Migrating from capacity payments to reliability options," Energy Policy, Elsevier, vol. 35(9), pages 4545-4554, September.
  5. Lamont, Alan D., 2008. "Assessing the long-term system value of intermittent electric generation technologies," Energy Economics, Elsevier, vol. 30(3), pages 1208-1231, May.
  6. Munksgaard, Jesper & Morthorst, Poul Erik, 2008. "Wind power in the Danish liberalised power market--Policy measures, price impact and investor incentives," Energy Policy, Elsevier, vol. 36(10), pages 3940-3947, October.
  7. Capros, Pantelis & Mantzos, Leonidas & Parousos, Leonidas & Tasios, Nikolaos & Klaassen, Ger & Van Ierland, Tom, 2011. "Analysis of the EU policy package on climate change and renewables," Energy Policy, Elsevier, vol. 39(3), pages 1476-1485, March.
  8. 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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Cited by:
  1. Klinge Jacobsen, Henrik & Schröder, Sascha Thorsten, 2012. "Curtailment of renewable generation: Economic optimality and incentives," Energy Policy, Elsevier, vol. 49(C), pages 663-675.

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