[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/eee/eneeco/v30y2008i3p1208-1231.html
   My bibliography  Save this article

Assessing the long-term system value of intermittent electric generation technologies

Author

Listed:
  • Lamont, Alan D.
Abstract
This research investigates the economic penetration and system-wide effects of large-scale intermittent technologies in an electric generation system. The research extends the standard screening curve analysis to optimize the penetration and system structure with intermittent technologies. The analysis is based on hour-by-hour electric demands and intermittent generation. A theoretical framework is developed to find an expression for the marginal value of an intermittent technology as a function of the average system marginal cost, the capacity factor of the generator, and the covariance between the generator's hourly production and the hourly system marginal cost. A series of model runs are made examining the penetration of wind and photovoltaic in a simple electric generation system. These illustrate the conclusions in the theoretical analysis and illustrate the effects that large-scale intermittent penetration has on the structure of the generation system. In the long-term, adding intermittent generation to a system allows us to restructure the dispatchable generation capacity to a mix with lower capital cost. It is found that large-scale intermittent generation tends to reduce the optimal capacity and production of baseload generators and increase the capacity and production of intermediate generators, although the extent to which this occurs depends strongly on the pattern of production from the intermediate generators. It is also shown that the marginal value of intermittent generation declines as it penetrates. The analysis investigates the specific mechanism through which this occurs.

Suggested Citation

  • Lamont, Alan D., 2008. "Assessing the long-term system value of intermittent electric generation technologies," Energy Economics, Elsevier, vol. 30(3), pages 1208-1231, May.
    • Handle: RePEc:eee:eneeco:v:30:y:2008:i:3:p:1208-1231
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0140-9883(07)00038-2
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Grubb, Michael J., 1988. "The potential for wind energy in Britain," Energy Policy, Elsevier, vol. 16(6), pages 594-607, December.
    2. Grubb, M. J., 1991. "The integration of renewable electricity sources," Energy Policy, Elsevier, vol. 19(7), pages 670-688, September.
    3. Hirst, Eric & Hild, Jeffrey, 2004. "The Value of Wind Energy as a Function of Wind Capacity," The Electricity Journal, Elsevier, vol. 17(6), pages 11-20, July.
    4. DeCarolis, Joseph F. & Keith, David W., 2005. "The Costs of Wind's Variability: Is There a Threshold?," The Electricity Journal, Elsevier, vol. 18(1), pages 69-77.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Leijon, Mats & Skoglund, Annika & Waters, Rafael & Rehn, Alf & Lindahl, Marcus, 2010. "On the physics of power, energy and economics of renewable electric energy sources – Part I," Renewable Energy, Elsevier, vol. 35(8), pages 1729-1734.
    2. Skoglund, Annika & Leijon, Mats & Rehn, Alf & Lindahl, Marcus & Waters, Rafael, 2010. "On the physics of power, energy and economics of renewable electric energy sources - Part II," Renewable Energy, Elsevier, vol. 35(8), pages 1735-1740.
    3. Hirth, Lion & Ueckerdt, Falko & Edenhofer, Ottmar, 2015. "Integration costs revisited – An economic framework for wind and solar variability," Renewable Energy, Elsevier, vol. 74(C), pages 925-939.
    4. Anderson, Dennis & Leach, Matthew, 2004. "Harvesting and redistributing renewable energy: on the role of gas and electricity grids to overcome intermittency through the generation and storage of hydrogen," Energy Policy, Elsevier, vol. 32(14), pages 1603-1614, September.
    5. Lion Hirth, 2013. "The Market Value of Variable Renewables. The Effect of Solar and Wind Power Variability on their Relative Price," RSCAS Working Papers 2013/36, European University Institute.
    6. Jia Liu & G. Cornelis van Kooten & Lawrence Pitt, 2005. "Integrating Wind Power in Electricity Grids: An Economic Analysis," Working Papers 2005-02, University of Victoria, Department of Economics, Resource Economics and Policy Analysis Research Group.
    7. Ryan Prescott & G. Cornelis van Kooten & Hui Zhu, 2007. "The Potential for Wind Energy Meeting Electricity Needs on Vancouver Island," Energy & Environment, , vol. 18(6), pages 723-746, November.
    8. Olsina, Fernando & Roscher, Mark & Larisson, Carlos & Garces, Francisco, 2007. "Short-term optimal wind power generation capacity in liberalized electricity markets," Energy Policy, Elsevier, vol. 35(2), pages 1257-1273, February.
    9. Weitzel, Timm & Glock, Christoph H., 2018. "Energy management for stationary electric energy storage systems: A systematic literature review," European Journal of Operational Research, Elsevier, vol. 264(2), pages 582-606.
    10. Yao, Xing & Yi, Bowen & Yu, Yang & Fan, Ying & Zhu, Lei, 2020. "Economic analysis of grid integration of variable solar and wind power with conventional power system," Applied Energy, Elsevier, vol. 264(C).
    11. Salci, Sener & Jenkins, Glenn, 2016. "An Economic and Stakeholder Analysis for the Design of IPP Contracts for Wind Farms," MPRA Paper 70578, University Library of Munich, Germany.
    12. Neij, L, 1999. "Cost dynamics of wind power," Energy, Elsevier, vol. 24(5), pages 375-389.
    13. Ueckerdt, Falko & Hirth, Lion & Luderer, Gunnar & Edenhofer, Ottmar, 2013. "System LCOE: What are the costs of variable renewables?," Energy, Elsevier, vol. 63(C), pages 61-75.
    14. Michael R. Milligan, 2000. "Wind Power Planning and Operational Benefits and Issues in Evolving Competitive Markets," Energy & Environment, , vol. 11(4), pages 439-459, July.
    15. Sinden, Graham, 2007. "Characteristics of the UK wind resource: Long-term patterns and relationship to electricity demand," Energy Policy, Elsevier, vol. 35(1), pages 112-127, January.
    16. Philippe Menanteau & Dominique Finon & Marie-Laure Lamy, 2004. "L'intégration de la production intermittente dans les marchés électriques libéralisés : des surcoûts techniques aux pénalités économiques imposées par les règles de fonctionnement des marchés," Post-Print halshs-00001311, HAL.
    17. Grubb, Michael & Butler, Lucy & Twomey, Paul, 2006. "Diversity and security in UK electricity generation: The influence of low-carbon objectives," Energy Policy, Elsevier, vol. 34(18), pages 4050-4062, December.
    18. Moura, Pedro S. & de Almeida, Aníbal T., 2010. "The role of demand-side management in the grid integration of wind power," Applied Energy, Elsevier, vol. 87(8), pages 2581-2588, August.
    19. Stennes, Brad & Niquidet, Kurt & van Kooten, G. Cornelis, 2009. "Implications of Expanding Bioenergy Production from Wood in British Columbia: An Application of a Regional Wood Fibre Allocation Model," Working Papers 50782, University of Victoria, Resource Economics and Policy.
    20. Garcia, Raquel S. & Weisser, Daniel, 2006. "A wind–diesel system with hydrogen storage: Joint optimisation of design and dispatch," Renewable Energy, Elsevier, vol. 31(14), pages 2296-2320.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:eneeco:v:30:y:2008:i:3:p:1208-1231. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eneco .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.