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Balancing and Intraday Market Design: Options for Wind Integration

  • Frieder Borggrefe
  • Karsten Neuhoff

EU Member States increase deployment of intermittent renewable energy sources to deliver the 20% renewable target formulated in the European Renewables Directive of 2008. To incorporate these intermittent sources, a power market needs to be flexible enough to accommodate short-term forecasts and quick turn transactions. This flexibility is particularly valuable with respect to wind energy, where wind forecast uncertainty decreases significantly in the final 24 hours before actual generation. Therefore, current designs of intraday and balancing markets need to be altered to make full use of the flexibility of the transmission system and the different generation technologies to effectively respond to increased uncertainty. This paper explores the current power market designs in European countries and North America and assesses these designs against criteria that evaluate whether they are able to adequately handle wind intermittency.

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File URL: http://www.diw.de/documents/publikationen/73/diw_01.c.387225.de/dp1162.pdf
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Paper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number 1162.

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Length: 34 p.
Date of creation: 2011
Date of revision:
Handle: RePEc:diw:diwwpp:dp1162
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  1. Glachant, Jean-Michel & Finon, Dominique, 2010. "Large-scale wind power in electricity markets," Energy Policy, Elsevier, vol. 38(10), pages 6384-6386, October.
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