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Managing the Intermittency of Wind Energy Generation in Greece

Author

Listed:
  • Theodoros Christodoulou

    (School of Economics, Aristotle University of Thessaloniki, 54124 Thessaloniki, Greece)

  • Nikolaos S. Thomaidis

    (RiskGroup, Department of Financial and Management Engineering, University of the Aegean, 82100 Chios, Greece)

  • Stergios Kartsios

    (Department of Meteorology and Climatology, School of Geology, Aristotle University of Thessaloniki, 54124 Thessaloniki, Greece)

  • Ioannis Pytharoulis

    (Department of Meteorology and Climatology, School of Geology, Aristotle University of Thessaloniki, 54124 Thessaloniki, Greece)

Abstract

This paper performs a comprehensive analysis of the wind energy potential of onshore regions in Greece with emphasis on quantifying the volume risk and the spatial covariance structure. Optimization techniques are employed to derive efficient wind capacity allocation plans (also known as generation portfolios) incorporating different yield aspirations. The generation profile of minimum variance and other optimal portfolios along the efficient frontier are subject to rigorous evaluation using a fusion of descriptive and statistical methods. In particular, principal component analysis is employed to estimate factor models and investigate the spatiotemporal properties of wind power generation, providing valuable insights into the persistence of volume risk. The overarching goal of the study is to employ a set of statistical and mathematical programming tools guiding investors, aggregators and policy makers in their selection of wind energy generating assets. The findings of this research challenge the effectiveness of current policies and industry practices, offering a new perspective on wind energy harvesting with a focus on the management of volume risk.

Suggested Citation

  • Theodoros Christodoulou & Nikolaos S. Thomaidis & Stergios Kartsios & Ioannis Pytharoulis, 2024. "Managing the Intermittency of Wind Energy Generation in Greece," Energies, MDPI, vol. 17(4), pages 1-32, February.
    • Handle: RePEc:gam:jeners:v:17:y:2024:i:4:p:866-:d:1338142
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    References listed on IDEAS

    as
    1. Monforti, F. & Huld, T. & Bódis, K. & Vitali, L. & D'Isidoro, M. & Lacal-Arántegui, R., 2014. "Assessing complementarity of wind and solar resources for energy production in Italy. A Monte Carlo approach," Renewable Energy, Elsevier, vol. 63(C), pages 576-586.
    2. Novacheck, Joshua & Johnson, Jeremiah X., 2017. "Diversifying wind power in real power systems," Renewable Energy, Elsevier, vol. 106(C), pages 177-185.
    3. Thomaidis, Nikolaos S. & Christodoulou, Theodoros & Santos-Alamillos, Francisco J., 2023. "Handling the risk dimensions of wind energy generation," Applied Energy, Elsevier, vol. 339(C).
    4. Hu, Jing & Harmsen, Robert & Crijns-Graus, Wina & Worrell, Ernst, 2019. "Geographical optimization of variable renewable energy capacity in China using modern portfolio theory," Applied Energy, Elsevier, vol. 253(C), pages 1-1.
    5. Grothe, Oliver & Schnieders, Julius, 2011. "Spatial Dependence in Wind and Optimal Wind Power Allocation: A Copula Based Analysis," EWI Working Papers 2011-5, Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI).
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