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Reliability in Multy-Regional Power Systems - Capacity Adequacy and the Role of Interconnectors

Author

Listed:
  • Simeon Hagspiel

    (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI))

  • Andreas Knaut

    (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI))

  • Jakob Peter

    (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI))

Abstract

Based upon probabilistic reliability metrics, we develop an optimization model to determine the efficient amount and location of firm generation capacity to achieve reliability targets in multiregional electricity systems. A particular focus lies on the representation and contribution of transmission capacities as well as variable renewable resources. Calibrating our model with a comprehensive dataset for Europe, we find that there are substantial benefits from regional cooperation. The amount of firm generation capacity to meet a perfectly reliable system could be reduced by 32.4GW (i.e., 6.1 %) compared to an isolated regional approach, which translates to savings of 12.9 Bn Euro when being valued with typical investment costs of an open-cycle gas turbine. Interconnectors contribute in both directions, with capacity values up to their technical maximum of close to 200 %, while wind power contributions are in the range of 3.8 - 29.5 %. Furthermore, we find that specific reliability targets heavily impact the efficient amount and distribution of reliable capacity as well as the contribution of individual technologies, and should therefore be chosen with care.

Suggested Citation

  • Simeon Hagspiel & Andreas Knaut & Jakob Peter, 2017. "Reliability in Multy-Regional Power Systems - Capacity Adequacy and the Role of Interconnectors," EWI Working Papers 2017-7, Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI).
    • Handle: RePEc:ris:ewikln:2017_007
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    References listed on IDEAS

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    3. Lijesen, Mark G., 2007. "The real-time price elasticity of electricity," Energy Economics, Elsevier, vol. 29(2), pages 249-258, March.
    4. Michael L. Telson, 1975. "The Economies of Alternative Levels of Reliability for Electric Power Generation Systems," Bell Journal of Economics, The RAND Corporation, vol. 6(2), pages 679-694, Autumn.
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    6. repec:aen:eeepjl:2_2_a02 is not listed on IDEAS
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    Cited by:

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    3. Zhou, Ella & Cole, Wesley & Frew, Bethany, 2018. "Valuing variable renewable energy for peak demand requirements," Energy, Elsevier, vol. 165(PA), pages 499-511.
    4. Jakob Peter & Johannes Wagner, 2018. "Optimal Allocation of Variable Renewable Energy Considering Contributions to Security of Supply," EWI Working Papers 2018-2, Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI).

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    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • D47 - Microeconomics - - Market Structure, Pricing, and Design - - - Market Design
    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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