The impact of wind generation on the electricity spot-market price level and variance: The Texas experience

Woo, Chi-Keung; Horowitz, Ira; Moore, Jack; Pacheco, A.

doi:10.1016/j.enpol.2011.03.084

Cited by 328 publications

(182 citation statements)

References 22 publications

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“…First, rising electricity prices and increasing price volatility (Bierbrauer et al, 2007;Valenzuela et al, 2012) will encourage electricity retailers to implement and extend their Demand Response activities. The underlying reason is, as the literature on renewables suggests, that an increase in intermittent wind and solar generation comes at the cost of an increase in the spot-price variance (Chao, 2011;Green and Vasilakos, 2010;Jacobsen and Zvingilaite, 2010;Milstein and Tishler, 2011;Woo et al, 2011). Second, the penetration of Demand Response programs will also increase due to regulatory settings.…”

Section: Policy Implicationsmentioning

confidence: 99%

Measuring the financial impact of demand response for electricity retailers

Feuerriegel

Neumann

2014

Energy Policy

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Due to the integration of intermittent resources of power generation such as wind and solar, the amount of supplied electricity will exhibit unprecedented fluctuations. Electricity retailers can partially meet the challenge of matching demand and volatile supply by shifting power demand according to the fluctuating supply side. The necessary technology infrastructure such as Advanced Metering Infrastructures for this so-called Demand Response (DR) has advanced. However, little is known about the economic dimension and further effort is strongly needed to realistically quantify the financial impact. To succeed in this goal, we derive an optimization problem that minimizes procurement costs of an electricity retailer in order to control Demand Response usage. The evaluation with historic data shows that cost volatility can be reduced by 7.74 %; peak costs drop by 14.35 %; and expenditures of retailers can be significantly decreased by 3.52 %.

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Section: Policy Implicationsmentioning

confidence: 99%

Measuring the financial impact of demand response for electricity retailers

Feuerriegel

Neumann

2014

Energy Policy

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“…Although these studies provide applicationbased analysis and the results are indicative, few of them consider the impacts of energy price volatility. In an energy system with high share of renewables, the energy price, especially the electricity spot price, can be dramatically affected by the production from renewables such as wind [17,18], which may to a great extent affects the operational economy of different hydrogen-based applications. For countries like Denmark that aims for 100% renewable with 50% electricity produced by wind [19], such kind of analysis must consider the energy price volatility.…”

Section: Introductionmentioning

confidence: 99%

Value assessment of hydrogen-based electrical energy storage in view of electricity spot market

You

Lin

2016

J. Mod. Power Syst. Clean Energy

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Hydrogen as an energy carrier represents one of the most promising carbon-free energy solutions. The ongoing development of power-to-gas (PtG) technologies that supports large-scale utilization of hydrogen is therefore expected to support hydrogen economy with a final breakthrough. In this paper, the economic performance of a MW-sized hydrogen system, i.e. a composition of water electrolysis, hydrogen storage, and fuel cell combined heat and power plant (FCCHP), is assessed as an example of hydrogen-based bidirectional electrical energy storage (EES). The analysis is conducted in view of the Danish electricity spot market that has high price volatility due to its high share of wind power. An economic dispatch model is developed as a mixed-integer programming (MIP) problem to support the estimation of variable cost of such a system taking into account a good granularity of the technical details. Based on a projected technology improvement by 2020, sensitivity analysis is conducted to illustrate how much the hydrogen-based EES is sensitive to variations of the hydrogen price and the capacity of hydrogen storage.

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“…Wind power also suppresses electricity prices for electricity more generally because hourly markets set prices at the margin. Because wind power is either delivered under contract or bids into the spot market near $0 given its low marginal cost (zero fuel costs), it lowers the spot (marginal) price for all electricity sales (27,28). A change in offshore wind power communication to match its promise is thus needed.…”

Section: Research Requiredmentioning

confidence: 99%