Integrating Intermittent Renewable Wind Generation - Insights from the Stochastic Electricity Market Model (stELMOD)
Electricity Markets Working Paper No. 49
33 Pages Posted: 29 May 2012
Date Written: May 22, 2012
In northern Europe wind energy became a dominating renewable energy source due to natural conditions and national support schemes. However, the uncertainty about wind generation affects existing network infrastructure and power production planning of generators and cannot not be fully diminished by wind forecasts. In this paper we develop a stochastic electricity market model to address the impact of uncertain wind generation on electricity markets and commitment decisions of generators. Stochastic programming techniques are used to incorporate uncertain wind generation. The technical characteristics of transporting electrical energy as well as power plants are explicitly taken into account. The consecutive clearing of the electricity markets is incorporated by a rolling planning procedure. The model is applied to the German electricity system covering an exemplary week. Three different cases of considering uncertain wind generation are analyzed. The results indicate that while the bidding behavior in the dayahead market is quite similar the approaches show notable differences in the behavior on the intraday market.
Keywords: electricity, unit commitment, stochasticity, renewable energy
JEL Classification: L94
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