Contribution of wind energy to balancing markets: The case of Spain

Abstract

Ancillary services are intended to ensure the quality, reliability, and security conditions of the electricity supply. Active power‐related ancillary services are considered balancing services, including mandatory services, such as spinning or primary regulation, and optional services, such as secondary and tertiary regulation. These optional balancing services have typically been supplied by conventional power plants, but since their contribution to the production share is decreasing due to high renewable energy penetration, power system operators are currently in need of alternatives. In addition, the recent advances in both the wind power industry and power system observability and controllability, and the necessary changes in balancing markets have made it technically and economically possible for wind power plants to contribute to optional balancing services. Under this framework, our study focuses on the contribution of wind power to balancing markets in the Spanish power system. Specifically, this work analyses the operational capability test for wind energy active power ancillary services provision and the results of the participation of wind energy to tertiary regulation and imbalance management from February 2016 to July 2017. Furthermore, the analysis includes a comparison with other generation technologies and the identification of upward and downward direction margins. These results show the real experience of the contribution of Spanish wind energy to optional active power ancillary services. This article is categorized under: Wind Power > Systems and Infrastructure

Participation of wind power producers in day‐ahead and balancing markets: An overview and a simulation‐based study

“…Bids of aggregated WPPs are typically advantageous to minimize forecast errors. As noted earlier, this is the solution adopted in Spain for the participation of WPPs in the mFRR market (Martín‐Martínez et al, ). It can also be considered a good solution to increase the efficiency of the participation of WPPs in BMs, namely by reducing imbalances (and consequently the penalties to pay) and the wasted energy (in case of meeting set‐points).…”

“…This situation leads to a reduction of market prices, but also to a large quantity of wasted energy concerning the available resources. So, to avoid wasting energy, WPPs should submit aggregated bids in BMs, as in Spain (Martín‐Martínez et al, ), or consider bids aggregated with conventional generation, as in Denmark (Energinet, ), or even provide a maximum of 70% of their installed capacity for downward regulation, as in Germany (50Hertz, ).…”

“…Martín‐Martínez et al () concluded that the provision of upward regulation can be possible in case of forecast errors, when the real‐time expected production is higher than the performed bids, or also where VPPs perform voluntary bids below forecasts. This can also be possible by overloading wind turbines, that is, by forcing their inertia moment to generate extra energy (Shang, Hu, Yuan, & Chi, ).…”

On the participation of wind energy in response and reserve markets in Great Britain and Spain

“…Over 4 GW of new wind energy capacity is expected to be installed by 2020 following two recent auctions for investment bonuses [9]. This change has incentivised wind energy to participate more actively in day-ahead (DA), intraday (ID) and balancing markets [10]. For example, wind energy is making a considerable contribution to volumes traded in the new European cross border ID market (XBID) which opened in June 2018.…”

“…In 2018, 1597 GWh was traded on XBID representing 4.5 % of the total ID market volume [11]. Wind energy has been able to provide bids in FRR, RR and Imbalance Management markets in the Spanish power system since 2016 [10].…”