Appropriate contract durations in the German markets for on-line reserve capacity

Just, Sebastian

doi:10.1007/s11149-010-9141-0

Cited by 30 publications

(20 citation statements)

References 16 publications

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“…Böttger & Bruckner (2015) estimate that this would reduce PC capacity costs by 11-13%. As a side benefit, it also improves the efficiency of thermal plant dispatch (Just 2010, Müsgens et al 2012, Bucksteeg et al 2015, Sprey et al 2015. It would also reduce must-run of thermal plants (Hirth 2015a), keeping up the spot price and mitigating the market value drop of wind and solar power (Hirth 2013(Hirth , 2015b.…”

Section: Policy Options: Lowering Entrance Barriersmentioning

confidence: 99%

Balancing power and variable renewables: Three links

Hirth

Ziegenhagen

2015

Renewable and Sustainable Energy Reviews

267

148

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-Balancing power is used to quickly restore the supply-demand balance in power systems. The need for this tends to be increased by the use of variable renewable energy sources (VRE) such as wind and solar power. This paper reviews three channels through which VRE and balancing systems interact: the impact of VRE forecast errors on balancing reserve requirements; the supply of balancing services by VRE generators; and the incentives to improve forecasting provided by imbalance charges. The paper reviews the literature, provides stylized facts from German market data, and suggests policy options. Surprisingly, while German wind and solar capacity has tripled since 2008, balancing reserves have been reduced by 15%, and costs by 50%.

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Section: Policy Options: Lowering Entrance Barriersmentioning

confidence: 99%

Balancing power and variable renewables: Three links

Hirth

Ziegenhagen

2015

Renewable and Sustainable Energy Reviews

267

148

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“…Investigation of the effects of co-optimization for the control reserve markets and spot markets simultaneously. Just (2011) stated that the increase in complexity does not lead to a high increase in efficiency.…”

Section: Recommendation For Future Researchmentioning

confidence: 99%

Economics of control reserve provision by fluctuating renewable energy sources

Jansen

2016

2016 13th International Conference on the European Energy Market (EEM)

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The delivery of control reserve by fluctuating renewable energy sources (RES) generators will be important in an energy system with high RES penetration. This paper extends a previously introduced methodology to quantify the possible additional income of different pools of fluctuating RES generators in the negative secondary and tertiary control reserve market in Germany. The updated methodology allows concluding on the ideal market conditions by comparing different pool types and years. The development of the results over a long assessment period allows extrapolating the market value of the new market participants into the future. Results show a high dependency of the possible additional income on the overall market size and the market conditions and regulations

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“…Just (2010) and Müsgens et al (2012) show that independently of VRE, shorter auction periods increase economic efficiency.…”

Section: Policy Recommendationsmentioning

confidence: 99%

Control Power and Variable Renewables: A Glimpse at German Data

Hirth

Ziegenhagen

2013

SSRN Journal

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-Control power (regulating power, balancing power) is used to quickly restore the supply-demand balance in power systems. Variable renewable energy sources (VRE) such as wind and solar power are often thought to increase the reserve requirement significantly. This paper provides a comprehensive overview of balancing systems in Europe, discusses the role of VRE, and presents empirical market data from Germany. Despite German VRE capacity doubled during the last five years and has surpassed 70% of peak load, contracted control power decreased by 20%, and procurement cost fell by 50%. Today, control power adds only 0.4% to household electricity prices. Nevertheless, we identify several sources of inefficiency in control power markets and imbalance settlement systems and propose a number of policy changes to stimulate the participation of VRE in control provision and to improve the incentives to forecast accurately.Key Words -Balancing power; Control Power; Variable renewables; Wind power; Solar power; Market design Graphical Abstract -There are many factors that determine the reserve requirement for control (left). Combined wind and solar capacity in Germany doubled between 2008 and 2012 (right). Surprisingly, the capacity of control power that system operators contracted for short-term system balancing decreased by 20% and costs dropped by 50%.

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Appropriate contract durations in the German markets for on-line reserve capacity

Cited by 30 publications

References 16 publications

Balancing power and variable renewables: Three links

Balancing power and variable renewables: Three links

Economics of control reserve provision by fluctuating renewable energy sources

Control Power and Variable Renewables: A Glimpse at German Data

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