IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

The Economics of Wind Power with Energy Storage

  • Pablo Benitez
  • Lilianna Dragulescu
  • G. Cornelis van Kooten

We develop a nonlinear mathematical optimization program for investigating the economic and environmental implications of wind penetration in electrical grids and evaluating how hydropower storage could be used to offset wind power intermittence. When wind power is added to an electrical grid consisting of thermal and hydropower plants, it increases system variability and results in a need for additional peak-load, gas-fired generators. Our empirical application using load data for Alberta’s electrical grid shows that 32% wind penetration (normalized to peak demand) results in a net cost increase of $C5.20/ MWh, while 64% wind penetration could result in an increase of $12.50/MWh. Costs of reducing CO2 emissions are estimated to be $41-$56 per t CO2 . When pumped hydro storage is introduced in the system or the capacity of the water reservoirs is enhanced, the hydropower facility could provide most of the peak load requirements obviating the need to build large peak-load gas generators.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: https://web.uvic.ca/~repa/publications/REPA%20working%20papers/WorkingPaper2006-02.pdf
File Function: Final version, 2006
Download Restriction: no

Paper provided by University of Victoria, Department of Economics, Resource Economics and Policy Analysis Research Group in its series Working Papers with number 2006-02.

as
in new window

Length: 37 pages
Date of creation: Jun 2006
Date of revision:
Handle: RePEc:rep:wpaper:2006-02
Contact details of provider: Postal: P.O. Box 1700, STN CSC, Victoria, B.C., V8W 2Y2
Phone: (250) 721-8532
Fax: (250) 721-6214
Web page: http://web.uvic.ca/~repa/
More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is featured on the following reading lists or Wikipedia pages:

  1. Intermittent energy source in Wikipedia English ne '')

When requesting a correction, please mention this item's handle: RePEc:rep:wpaper:2006-02. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (G.C. van Kooten)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.