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Influence of Wind Power on Intraday Electricity Spot Market: A Comparative Study Based on Real Data

Author

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  • Pedro M. S. Frade

    () (REN—Redes Energéticas Nacionais, SGPS, S.A, Av. dos Estados Unidos da America, 1749-061 Lisbon, Portugal
    Instituto Superior Técnico, University of Lisbon, 1049-001 Lisbon, Portugal)

  • João V. G. A. Vieira-Costa

    () (Faculty of Engineering of the University of Porto, 4200-465 Porto, Portugal)

  • Gerardo J. Osório

    () (C-MAST, University of Beira Interior, 6201-001 Covilhã, Portugal)

  • João J. E. Santana

    () (INESC-ID, Instituto Superior Técnico, University of Lisbon, 1049-001 Lisbon, Portugal)

  • João P. S. Catalão

    () (C-MAST, University of Beira Interior, 6201-001 Covilhã, Portugal
    INESC-ID, Instituto Superior Técnico, University of Lisbon, 1049-001 Lisbon, Portugal
    INESC TEC and the Faculty of Engineering of the University of Porto, 4200-465 Porto, Portugal)

Abstract

Overtime, in the electricity sector, there has been a technological transfer to renewable electricity generation. With this change, processes, in the economic and availability terms, are expected to improve. In this new paradigm, society demands electricity without an impact on the environment and with the lowest possible cost. The wind power (WP) integration appears in this evolution process by achieving important technological advances, supporting in 2017 a growth of 44% of new projects in Europe, higher than any other renewable technology. However, the renewable energy sources (RES) integration in the electricity networks still presents technical difficulties and challenges, leading to challenges in the electricity markets (EMs). Therefore, this work evaluates the importance of WP and its influence on the Iberian Electricity Market (MIBEL), at the level of the intraday electricity spot market (IESM). This is an innovative study because literature usually focuses on day-ahead WP impact and this study focuses on intraday markets, which are closer to the consumption periods. The goal was to make an analysis on the impacts when betting on WP sources, in order to improve the market interaction with WP integration, considering as criteria the consumer satisfaction, in terms of lower electricity prices and WP availability. For this study, the market bids registered by the Iberian Electricity Market Operator (OMIE), from 2015 to 2017, ran over a new market simulator, specially developed for this proposal, considering a virtual market condition, but not considering the bids made by WP producers. The comparison of the results allowed the evaluation of the WP influence on the EM quantitative, which is noteworthy.

Suggested Citation

  • Pedro M. S. Frade & João V. G. A. Vieira-Costa & Gerardo J. Osório & João J. E. Santana & João P. S. Catalão, 2018. "Influence of Wind Power on Intraday Electricity Spot Market: A Comparative Study Based on Real Data," Energies, MDPI, Open Access Journal, vol. 11(11), pages 1-1, November.
  • Handle: RePEc:gam:jeners:v:11:y:2018:i:11:p:2974-:d:179725
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    References listed on IDEAS

    as
    1. Cludius, Johanna & Hermann, Hauke & Matthes, Felix Chr. & Graichen, Verena, 2014. "The merit order effect of wind and photovoltaic electricity generation in Germany 2008–2016: Estimation and distributional implications," Energy Economics, Elsevier, vol. 44(C), pages 302-313.
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    More about this item

    Keywords

    electricity market prices; electricity market simulator; influence; intraday electricity market; MIBEL; wind power;

    JEL classification:

    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q47 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy Forecasting
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q49 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Other

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