Curtailing Intermittent Generation in Electrical Systems

40 Pages Posted: 29 Feb 2012 Last revised: 29 May 2015

See all articles by Owen Q. Wu

Owen Q. Wu

Indiana University - Kelley School of Business

Roman Kapuscinski

University of Michigan, Stephen M. Ross School of Business

Date Written: March 2013

Abstract

Energy generation from intermittent renewable sources introduces additional variability into electrical systems, resulting in a higher cost of balancing against the increased variabilities. Ways to balance demand and supply for electricity include using flexible generation resources, storage operations, and curtailing intermittent generation. This paper focuses on the operational and environmental impact of curtailing intermittent generation. We construct a stochastic dynamic optimization model that captures the critical components of the system operating cost and analyze how various generation resources should operate with and without curtailing intermittent generation. We find that the system cost reduction per unit of curtailed energy is consistently significant, and the presence of storage may increase the cost saving per unit of curtailed energy. We also find that curtailing intermittent generation often leads to system emission reductions.

Keywords: intermittent generation, wind power, curtailment, stochastic dynamic programming

JEL Classification: Q40

Suggested Citation

Wu, Owen Q. and Kapuscinski, Roman, Curtailing Intermittent Generation in Electrical Systems (March 2013). Ross School of Business Paper No. 1170, Available at SSRN: https://ssrn.com/abstract=2012428 or http://dx.doi.org/10.2139/ssrn.2012428

Owen Q. Wu (Contact Author)

Indiana University - Kelley School of Business ( email )

Business 670
1309 E. Tenth Street
Bloomington, IN 47401
United States

Roman Kapuscinski

University of Michigan, Stephen M. Ross School of Business ( email )

701 Tappan Street
Ann Arbor, MI MI 48109
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
111
Abstract Views
1,111
rank
293,830
PlumX Metrics