When the Wind Blows Over Europe: A Simulation Analysis and the Impact of Grid Extensions

18 Pages Posted: 17 Jan 2009

See all articles by Florian Leuthold

Florian Leuthold

Dresden University of Technology - Faculty of Economics and Business Management

Till Jeske

Dresden University of Technology - Faculty of Economics and Business Management

Hannes Weigt

WWZ, Wirtschaftswissenschaftliche Fakultät der Universität Basel

Christian von Hirschhausen

German Institute for Economic Research (DIW Berlin) - Department of International Economics

Date Written: January, 16 2009

Abstract

Given the ambitious, politically-driven wind energy agenda in some U.S. States (e.g., California and Texas) and in Europe (e.g., Germany and Spain), adequate regulatory instruments are needed that provide incentives for additional generation capacity and transmission expansion. This paper analyzes the impact of wind energy extension scenarios in 2020 on the European high voltage grid, using a nodal pricing mechanism and assuming expanded wind generation capacity. Our analysis is based on a DC Load Flow network model that is implemented in GAMS. The results show that the necessary network extensions mostly arise from existing congestion, particularly between countries, and that additional wind capacity can be integrated with relatively little effort. We conclude that the regulatory implications of additional feeding - in of wind energy are less critical than often asserted.

Keywords: Electricity, Network Modeling, Wind Integration, Regulation, Europe

JEL Classification: L94, L51, D61

Suggested Citation

Leuthold, Florian U. and Jeske, Till and Weigt, Hannes and von Hirschhausen, Christian, When the Wind Blows Over Europe: A Simulation Analysis and the Impact of Grid Extensions (January, 16 2009). Available at SSRN: https://ssrn.com/abstract=1328971 or http://dx.doi.org/10.2139/ssrn.1328971

Florian U. Leuthold (Contact Author)

Dresden University of Technology - Faculty of Economics and Business Management ( email )

Mommsenstrasse 13
Dresden, D-01062
Germany

Till Jeske

Dresden University of Technology - Faculty of Economics and Business Management ( email )

Mommsenstrasse 13
Dresden, D-01062
Germany

Hannes Weigt

WWZ, Wirtschaftswissenschaftliche Fakultät der Universität Basel ( email )

Basel, 4051
Switzerland

HOME PAGE: http://fonew.unibas.ch/

Christian Von Hirschhausen

German Institute for Economic Research (DIW Berlin) - Department of International Economics ( email )

Mohrenstraße 58
Berlin, 10117
Germany
+49-30-89789-343 (Phone)
+49/30/897 89 -200 (Fax)

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