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Utility-scale Wind Power: Impacts of Increased Penetration

Author

Listed:
  • Lawrence Pitt
  • G. Cornelis van Kooten
  • Murray Love
  • Ned Djilali

Abstract

Intermittent renewable energy sources such as wind, solar, run-of-river hydro, tidal streams and wave fluxes present interesting challenges when exploited in the production of electricity, which is then integrated into existing and future grids. We focus on wind energy systems because they have an emerging presence, with new installed capacity approaching 8 GW annually. We survey many studies and compile estimates of regulation, load following and unit commitment impacts on utility generating assets with increasing wind penetration. Reliability (system reserve), observed capacity factors and the effective capacity (ability to displace existing generation assets) of wind energy systems are discussed. A simple energy balance model and some results from utility-scale simulations illustrate the existence of a law of diminishing returns with respect to increasing wind penetration when measured by wind’s effective capacity, fuel displacement or CO2 abatement. A role for energy storage is clearly identified. Finally, the scale of wind energy systems is shown to be large for significant energy production and preliminary evidence is reviewed showing that extraction of energy from the atmospheric boundary layer by such systems, when penetration levels are significant, may have potential environmental impacts.

Suggested Citation

  • Lawrence Pitt & G. Cornelis van Kooten & Murray Love & Ned Djilali, 2005. "Utility-scale Wind Power: Impacts of Increased Penetration," Working Papers 2005-01, University of Victoria, Department of Economics, Resource Economics and Policy Analysis Research Group.
  • Handle: RePEc:rep:wpaper:2005-01
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    File URL: https://web.uvic.ca/~repa/publications/REPA%20working%20papers/WorkingPaper2005-01.pdf
    File Function: Final version, 2005
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    Citations

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    Cited by:

    1. Green, Chris & Baksi, Soham & Dilmaghani, Maryam, 2007. "Challenges to a climate stabilizing energy future," Energy Policy, Elsevier, vol. 35(1), pages 616-626, January.
    2. Benitez, Liliana E. & Benitez, Pablo C. & van Kooten, G. Cornelis, 2008. "The economics of wind power with energy storage," Energy Economics, Elsevier, vol. 30(4), pages 1973-1989, July.
    3. van Kooten, G. Cornelis & Timilsina, Govinda R., 2009. "Wind power development : economics and policies," Policy Research Working Paper Series 4868, The World Bank.
    4. repec:eee:enepol:v:109:y:2017:i:c:p:96-108 is not listed on IDEAS
    5. Broeer, Torsten & Fuller, Jason & Tuffner, Francis & Chassin, David & Djilali, Ned, 2014. "Modeling framework and validation of a smart grid and demand response system for wind power integration," Applied Energy, Elsevier, vol. 113(C), pages 199-207.
    6. van Kooten, G. Cornelis & Wong, Linda, 2010. "Economics of wind power when national grids are unreliable," Energy Policy, Elsevier, vol. 38(4), pages 1991-1998, April.

    More about this item

    JEL classification:

    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

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