Integrating Intermittent Renewable Wind Generation: A Stochastic Multi-Market Electricity Model for the European Electricity Market

29 Pages Posted: 24 May 2013

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 10, 2013

Abstract

In northern Europe wind energy has become 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 analyze the impact of uncertain wind generation on the different electricity markets as well as network congestion management. 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 reflecting the market regime of European markets. 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 reveal that the flexibility of the generation dispatch is increased either by using more flexible generation technologies or by flexibilizing the generation pattern of rather inflexible technologies.

Keywords: Electricity, Unit Commitment, Stochasticity, Renewable Energy

JEL Classification: C61, D41, L94

Suggested Citation

Abrell, Jan and Kunz, Friedrich, Integrating Intermittent Renewable Wind Generation: A Stochastic Multi-Market Electricity Model for the European Electricity Market (May 10, 2013). DIW Berlin Discussion Paper No. 1301, Available at SSRN: https://ssrn.com/abstract=2269025 or http://dx.doi.org/10.2139/ssrn.2269025

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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