Impacts of Intermittent Renewable Generation on Electricity System Costs
IEB Working Paper N. 2015/17
30 Pages Posted: 25 Sep 2015
Date Written: July 9, 2015
A successful deployment of power generation coming from variable renewable sources (VRES-E), such as wind and solar photovoltaic, strongly depends on the economic cost of system integration. This paper, in seeking to look beyond the impact of RES-E generation on the evolution of the total economic costs associated with the operation of the electricity system, aims to estimate the sensitivity of balancing market requirements and costs to the variable and non-fully predictable nature of intermittent renewable generation. The estimations reported in this paper for the Spanish electricity system stress the importance of both attributes as well as power system flexibility when accounting for the cost of balancing services.
Keywords: Electricity market design, balancing services, renewable energy, variable and intermittent generation, system flexibility
JEL Classification: D47, L51, Q41, Q42, Q47
Suggested Citation: Suggested Citation