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

See all articles by Jan Abrell

Jan Abrell

ETH Zürich - Centre for Energy Policy and Economics (CEPE)

Friedrich Kunz

German Institute for Economic Research (DIW Berlin)

Date Written: May 22, 2012

Abstract

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

Suggested Citation

Abrell, Jan and Kunz, Friedrich, Integrating Intermittent Renewable Wind Generation - Insights from the Stochastic Electricity Market Model (stELMOD) (May 22, 2012). Electricity Markets Working Paper No. 49, Available at SSRN: https://ssrn.com/abstract=2069935 or http://dx.doi.org/10.2139/ssrn.2069935

Jan Abrell

ETH Zürich - Centre for Energy Policy and Economics (CEPE) ( email )

8092 Zurich
Switzerland

Friedrich Kunz (Contact Author)

German Institute for Economic Research (DIW Berlin) ( email )

Mohrenstraße 58
Berlin, 10117
Germany

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