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Space and Time: Wind in an Investment Planning Model

Author

Listed:
  • Neuhoff, K.
  • Ehrenmann, A.
  • Butler, L.
  • Cust, J.
  • Hoexter, H.
  • Keats, K.
  • Kreczko,A.
  • Sinden, G.

Abstract

Investment planning models inform investment decisions and government policies. Current models do not capture the intermittent nature of renewable energy sources, restricting the applicability of the models for high penetrations of renewables. We provide a methodology to capture spatial variation in wind output in combination with transmission constraints. The representation of wind distributions with stochastic approaches or an extensive historic data set would exceed computational constraints for real world application. Hence we restrict the amount of input data, and use boot-strapping to illustrate the robustness of the results. For the UK power system we model wind deployment and the value of transmission capacity.

Suggested Citation

  • Neuhoff, K. & Ehrenmann, A. & Butler, L. & Cust, J. & Hoexter, H. & Keats, K. & Kreczko,A. & Sinden, G., 2006. "Space and Time: Wind in an Investment Planning Model," Cambridge Working Papers in Economics 0620, Faculty of Economics, University of Cambridge.
  • Handle: RePEc:cam:camdae:0620
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    File URL: http://www.electricitypolicy.org.uk/pubs/wp/eprg0603.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Investment planning model; Wind distribution; Electricity transmission; Renewables;
    All these keywords.

    JEL classification:

    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • C53 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Forecasting and Prediction Models; Simulation Methods
    • O21 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Planning Models; Planning Policy

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