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Analysing the sensitivity of electricity system operational costs to deviations in supply and demand

Author

Listed:
  • Joan Batalla-Bejerano

    (Rovira i Virgili University & Chair of Energy Sustainability & IEB (UB) – FUNSEAM)

  • Elisa Trujillo-Baute

    (University of Warwick & Chair of Energy Sustainability & IEB (UB) – FUNSEAM)

Abstract

Increasing renewable penetration has given rise to a series of challenges as regards the ability of electricity systems to balance supply and demand, particularly with high levels of intermittent renewable generation. This new scenario requires a detailed quantitative assessment of the way in which the electricity system might both deliver and accommodate higher levels of RES-E generation and of the associated economic costs for the consumer. The estimations reported in this paper for the Spanish electricity system stress the importance of demand imbalance when accounting for the cost of balancing services, in contrast with previous studies that have focused their attention more specifically on supply effects.

Suggested Citation

  • Joan Batalla-Bejerano & Elisa Trujillo-Baute, 2015. "Analysing the sensitivity of electricity system operational costs to deviations in supply and demand," Working Papers 2015/8, Institut d'Economia de Barcelona (IEB).
    • Handle: RePEc:ieb:wpaper:doc2015-8
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    File URL: http://ieb.ub.edu/wp-content/uploads/2018/04/2015-IEB-WorkingPaper-08.pdf
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    References listed on IDEAS

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    Cited by:

    1. Batalla-Bejerano, Joan & Trujillo-Baute, Elisa, 2016. "Impacts of intermittent renewable generation on electricity system costs," Energy Policy, Elsevier, vol. 94(C), pages 411-420.
    2. Batalla-Bejerano, Joan & Costa-Campi, Maria Teresa & Trujillo-Baute, Elisa, 2016. "Collateral effects of liberalisation: Metering, losses, load profiles and cost settlement in Spain’s electricity system," Energy Policy, Elsevier, vol. 94(C), pages 421-431.

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    More about this item

    Keywords

    Electricity market design; balancing services; renewable energy; electricity demand and supply deviations;
    All these keywords.

    JEL classification:

    • D47 - Microeconomics - - Market Structure, Pricing, and Design - - - Market Design
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • 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
    • Q47 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy Forecasting

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