The effect of hydro and wind generation on the mean and volatility of electricity prices in Spain

Pereira, João Pedro; Pesquita, Vasco; Rodrigues, Paulo M. M.

doi:10.1109/eem.2017.7981915

Cited by 10 publications

(16 citation statements)

References 6 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…This work takes the hydroelectric plants classification from the technical perspective, which divides them into four major groups: dam plants, run-of-river plants, mixed plants, and others (microplants and plants in drinking water circuits) [33]. The main interest is focused on dam plants that store water and have enough capacity to enable regulation of the maximum flow in one day; this regulation capacity is used to deliver energy at times of high demand, yielding two benefits: It permits to regulate the energy market; and the sale of energy can be made when it reaches high prices [33,34]. Additionally, this type of dams have functions that bring benefits such as regulating the flow of water to avoid flooding, supplying water for agriculture and industrial purposes, among others [33].…”

Section: Cost Of Dam Water Use In Hydroelectric Generationmentioning

confidence: 99%

Cost of Water Use for Negotiating Rates in Energy Exchanges: Evidence from the Hydroelectric Industry

Osorio-Agudelo

Naranjo‐Gil

Feliũ

2020

Water

View full text Add to dashboard Cite

This paper analyzes the importance of the cost of dam water use in hydroelectric generators according to the International Financial Reporting Standard (IFRS) and Management Accounting. Not valuing the use of water from dams would imply undervaluing energy generation service, leading to a lack of reasonability in the Financial Statements of electricity generators. For this reason, it is vital to recognize that dam water has a cost that directly impacts the Statement of Financial Position as an asset and later, in energy generation and commercialization, its cost will impact the statement of profit or loss, according to the IFRS as good accounting and financial practices around the world. Said cost will also be an important indicator for rationalizing consumption, defining public policy, or determining energy tariffs. An empirical study is conducted for Colombia and Norway, two of the main countries in the world whose primary source of energy generation is water. The results evidence the need for hydroelectric generators to present the cost of their hydric reserve as intangibles inventories because of its potential capacity to generate electric power. Additionally, there is a positive and significant relationship between the cost of water and the price of energy, and a negative relationship between the price of energy and dam levels.

show abstract

Section: Cost Of Dam Water Use In Hydroelectric Generationmentioning

confidence: 99%

Cost of Water Use for Negotiating Rates in Energy Exchanges: Evidence from the Hydroelectric Industry

Osorio-Agudelo

Naranjo‐Gil

Feliũ

2020

Water

View full text Add to dashboard Cite

show abstract

“…Price volatility is further exacerbated due to the lack of coordination between renewable generation and demand, demand spikes, line congestion, or generator bids [11,12]. This increase in price volatility has been observed across the world in Spain [13], Australia [14], Denmark [15], Germany [16], and the United States [17].…”

Section: Introductionmentioning

confidence: 99%

A Coordination Mechanism For Reducing Price Spikes in Distribution Grids

et al. 2020

View full text Add to dashboard Cite

Recently, given the increased integration of renewables and growing uncertainty in demand, the wholesale market price has become highly volatile. Energy communities connected to the main electricity grid may be exposed to this increasing price volatility. Additionally, they may also be exposed to local network congestions, resulting in price spikes. Motivated by this problem, in this paper, we present a coordination mechanism between entities at the distribution grid to reduce price volatility. The mechanism relies on the concept of duality theory in mathematical programming through which explicit constraints can be imposed on the local electricity price. Constraining the dual variable related to price enables the quantification of the demand-side flexibility required to guarantee a certain price limit. We illustrate our approach with a case study of a congested distribution grid and an energy storage system as the source of the required demand-side flexibility. Through detailed simulations, we determine the optimal size and operation of the storage system required to constrain prices. An economic evaluation of the case study shows that the business case for providing the contracted flexibility with the storage system depends strongly on the chosen price limit.

show abstract

“…Price volatility due to intermittent nature of renewables is observed in different regions around the world such as in Spain [3], Australia [4], Denmark [5], Germany [6], and Texas [7]. In some locations supply-side flexibility options in the form of hydropower [3], [5] or cross-border power flow [5] is able to address price volatility caused by the increased integration of renewables. However, supply-side flexibility options are subject to grid congestions which could possibly lead to price spikes.…”

Section: Introductionmentioning

confidence: 99%

The Role of Demand-Side Flexibility in Hedging Electricity Price Volatility in Distribution Grids

Chakraborty

Verzijlbergh

Lukszo

et al. 2019

2019 IEEE Power &Amp; Energy Society Innovative Smart Grid Technologies Conference (ISGT)

View full text Add to dashboard Cite

Locational Marginal Price (LMP) is a dual variable associated with supply-demand matching and represents the cost of delivering power to a particular location if the load at that location increases. In recent times it become more volatile due to increased integration of renewables that are intermittent. The issue of price volatility is further heightened during periods of grid congestion. Motivated by these problems, we propose a market design where, by constraining dual variables, we determine the amount of demand-side flexibility required to limit the rise of LMP. Through our proposed approach a price requesting load can specify its maximum willingness to pay for electricity and through demand-side flexibility hedge against price volatility. For achieving this, an organizational structure for flexibility management is proposed that exhibits the coordination required between the Distribution System Operator (DSO), an aggregator and the price requesting load. To demonstrate the viability of our proposed formulation, we run an illustrative simulation under infinite and finite line capacities.

show abstract

The effect of hydro and wind generation on the mean and volatility of electricity prices in Spain

Cited by 10 publications

References 6 publications

Cost of Water Use for Negotiating Rates in Energy Exchanges: Evidence from the Hydroelectric Industry

Cost of Water Use for Negotiating Rates in Energy Exchanges: Evidence from the Hydroelectric Industry

A Coordination Mechanism For Reducing Price Spikes in Distribution Grids

The Role of Demand-Side Flexibility in Hedging Electricity Price Volatility in Distribution Grids

Contact Info

Product

Resources

About