Impacts of wind and solar spatial diversification on its market value: A case study of the Chilean electricity market

Odeh, Rodrigo Pérez; Watts, David

doi:10.1016/j.rser.2019.01.015

Cited by 34 publications

(20 citation statements)

References 66 publications

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“…This has economic benefits, as more uniquely placed generators can sell electricity at higher prices when generation is low for more closely grouped ones. More geographically diverse generators contribute less to the "self-cannibalisation" effect, whereby electricity prices fall and/or fluctuate greatly during times of peak generation, such as during high winds [12]. This can even lead to periods of negative pricing, as generators will sell electricity at marginal cost minus the strike price in order to avoid costs for not generating [5].…”

Section: Impacts Of Diversitymentioning

confidence: 99%

Scottish Islands Interconnections: Modelling the Impacts on the UK Electricity Network of Geographically Diverse Wind and Marine Energy

Matthew

Spataru

2021

Energies

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To meet climate change goals, the decarbonisation of the UK electricity supply is crucial. Increased geographic diversity and resource use could help provide grid and market stability and reduce CO2 intensive balancing actions. The main purpose of this research is to investigate the impact of geographic diversity and Scottish island renewable energy on the UK network. This has been done by using the energy market modelling software PLEXOS with results validated using data for 2017/18. The model considers spatial diversification and forecasting errors by modelling day-ahead and intra-day markets with nodes for each distribution network operator region and island group. It was concluded that Scottish island renewable capacity could have a stabilising effect on the variability of renewables in terms of electricity generated, prices and forecasting errors, from the timescale of the entire year down to hours. The ability of geographically diverse generators to receive a higher price for electricity generated was shown to decrease with increased island capacity. Instances of negative prices were reduced with supply diversity (wind and marine) but not geographic diversity. Day ahead errors showed most clearly the impact of diversity of supply, particularly given the predictability of tidal stream generation.

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Section: Impacts Of Diversitymentioning

confidence: 99%

Scottish Islands Interconnections: Modelling the Impacts on the UK Electricity Network of Geographically Diverse Wind and Marine Energy

Matthew

Spataru

2021

Energies

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“…Impacts are also expected in the electricity markets on the basis of the marginal cost of each technology (the cost necessary to produce a megawatt) in the formation of its hourly price. Since VRE technologies have very low marginal costs (of the order of 0 €/MWh), compared to conventional technologies, there is a tendency for a decrease in the values verified in the wholesale markets-the order of merit effect [61,62]. For certain levels of VRE penetration, this effect is positive for consumers, due to a reduction in electricity market prices.…”

Section: Hourmentioning

confidence: 99%

“…For certain levels of VRE penetration, this effect is positive for consumers, due to a reduction in electricity market prices. On the other side, this effect leads to a reduction in producers profitability ("self-cannibalization effect") [62]. This situation may lessen the incentive to invest in new capacity deployment, preventing to achieve high shares of VRE generation [3].…”

Section: Hourmentioning

confidence: 99%

Exploring Wind and Solar PV Generation Complementarity to Meet Electricity Demand

Couto

Estanqueiro

2020

Energies

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Understanding the spatiotemporal complementarity of wind and solar power generation and their combined capability to meet the demand of electricity is a crucial step towards increasing their share in power systems without neglecting neither the security of supply nor the overall cost efficiency of the power system operation. This work proposes a methodology to exploit the complementarity of the wind and solar primary resources and electricity demand in planning the expansion of electric power systems. Scenarios that exploit the strategic combined deployment of wind and solar power against scenarios based only on the development of an individual renewable power source are compared and analysed. For each scenario of the power system development, the characterization of the additional power capacity, typical daily profile, extreme values, and energy deficit are assessed. The method is applied to a Portuguese case study and results show that coupled scenarios based on the strategic combined development of wind and solar generation provide a more sustainable way to increase the share of variable renewables into the power system (up to 68% for an annual energy exceedance of 10% for the renewable generation) when compared to scenarios based on an individual renewable power source. Combined development also enables to reduce the overall variability and extreme values of a power system net load.

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“…et al, 2020). For example, absolute median deviation (Mohammadi and Goudarzi, 2018), portfolio models (Odeh and Watts, 2019), graphical representations and percentile ranking (Hoicka and Rowlands, 2011), critical time window (Berger et al, 2020), among others. Beluco et al (2008) proposed the concept of energetic complementarity to assess the extent to which two energy resources can compensate for each other's energy availabilities.…”

Section: Literature Reviewmentioning

confidence: 99%

Assessing the Complementarities of Colombia’s Renewable Power Plants

et al. 2020

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Impacts of wind and solar spatial diversification on its market value: A case study of the Chilean electricity market

Cited by 34 publications

References 66 publications

Scottish Islands Interconnections: Modelling the Impacts on the UK Electricity Network of Geographically Diverse Wind and Marine Energy

Scottish Islands Interconnections: Modelling the Impacts on the UK Electricity Network of Geographically Diverse Wind and Marine Energy

Exploring Wind and Solar PV Generation Complementarity to Meet Electricity Demand

Assessing the Complementarities of Colombia’s Renewable Power Plants

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