Economic properties of wind power: A European assessment
We investigate the concomitance of intermittent wind powered generation (WPG) with load to assess its system value as the cost of replacing its output, hour by hour, using more intensively thermal technologies. The difference with its actual cost defines a social cost of wind power which is further divided into a technological and an adequacy component. Whereas the former may become negligible once thermal technologies pay for carbon emissions, the latter is a lower bound on WPG structural weakness w.r.t. thermal technologies. We apply our procedure to Germany, Denmark, Spain, France, Portugal and Ireland using hourly load and WPG data over several years. Our empirical findings show that there is a grain of truth in both the pros and the cons of wind power. The system value of WPG varies from three quarters of the equivalent thermal cost of electricity (on a yearly basis) but the incompressible adequacy cost represents a premium over the cost of serving yearly load in a system ranging around one-fifth.
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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
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.:
- Dominique Finon & Guy Meunier & Virginie Pignon, 2008.
"The social Efficiency of long-term capacity reserve mechanisms,"
- Finon, Dominique & Meunier, Guy & Pignon, Virginie, 2008. "The social efficiency of long-term capacity reserve mechanisms," Utilities Policy, Elsevier, vol. 16(3), pages 202-214, September.
- 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.
- 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.
- Kennedy, Scott, 2005. "Wind power planning: assessing long-term costs and benefits," Energy Policy, Elsevier, vol. 33(13), pages 1661-1675, September.
- Boccard, Nicolas, 2009. "Capacity factor of wind power realized values vs. estimates," Energy Policy, Elsevier, vol. 37(7), pages 2679-2688, July.
- Dinica, Valentina, 2008. "Initiating a sustained diffusion of wind power: The role of public-private partnerships in Spain," Energy Policy, Elsevier, vol. 36(9), pages 3562-3571, September.
- Sinden, Graham, 2007. "Characteristics of the UK wind resource: Long-term patterns and relationship to electricity demand," Energy Policy, Elsevier, vol. 35(1), pages 112-127, January.
- Oswald, James & Raine, Mike & Ashraf-Ball, Hezlin, 2008. "Will British weather provide reliable electricity?," Energy Policy, Elsevier, vol. 36(8), pages 3202-3215, August.
- Dale, Lewis & Milborrow, David & Slark, Richard & Strbac, Goran, 2004. "Total cost estimates for large-scale wind scenarios in UK," Energy Policy, Elsevier, vol. 32(17), pages 1949-1956, November.
- Martin, Brian & Diesendorf, Mark, 1983. "The economics of large-scale wind power in the UK A model of an optimally mixed CEGB electricity grid," Energy Policy, Elsevier, vol. 11(3), pages 259-266, September.
- Bolinger, Mark & Wiser, Ryan, 2009. "Wind power price trends in the United States: Struggling to remain competitive in the face of strong growth," Energy Policy, Elsevier, vol. 37(3), pages 1061-1071, March.
When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:38:y:2010:i:7:p:3232-3244. 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: (Shamier, Wendy)
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.