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

Abstract

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

Batalla-Bejerano, Joan and Trujillo-Baute, Elisa, Impacts of Intermittent Renewable Generation on Electricity System Costs (July 9, 2015). IEB Working Paper N. 2015/17, Available at SSRN: https://ssrn.com/abstract=2664535 or http://dx.doi.org/10.2139/ssrn.2664535

Joan Batalla-Bejerano

Rovira i Virgili University ( email )

Av. Universitat 1
Tarragona, Tarragona 43204
Spain

Elisa Trujillo-Baute (Contact Author)

University of Warwick ( email )

Gibbet Hill Rd.
Coventry, West Midlands CV4 8UW
United Kingdom

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