The cost of wind power variability
We develop a metric to quantify the sub-hourly variability cost of individual wind plants and show its use in valuing reductions in wind power variability. Our method partitions wind energy into hourly and sub-hourly components and uses corresponding market prices to determine variability costs. We use publically available 15-min ERCOT data, although the method developed can be applied to higher time resolution data if available. We do not estimate uncertainty costs though our metric can separate integration costs into variability and uncertainty components. The mean variability costs arising from 15-min to 1-h variations (termed load following) for 20 ERCOT wind plants was $8.73±$1.26 per MWh in 2008 and $3.90±$0.52 per MWh in 2009. Load following variability costs decrease as capacity factors increase, indicating wind plants sited in locations with good wind resources cost a system less to integrate. Twenty interconnected wind plants had a variability cost of $4.35 per MWh in 2008. The marginal benefit of interconnecting another wind plant diminishes rapidly: it is less than $3.43 per MWh for systems with 2 wind plants already interconnected, less than $0.7 per MWh for 4–7 wind plants, and less than $0.2 per MWh for 8 or more wind plants.
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.
When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:51:y:2012:i:c:p:233-243. 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: (Zhang, Lei)
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.