Balancing reserves in a power system with high wind penetration: evidence from Portugal

Pedro M.S. Frade, J. P.S. Catalao, João Pedro Pereira, J. J.E. Santana

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

The growth of intermittent renewable power generation has been drawing attention to the design of balancing markets. Portugal is an interesting case study because, while wind generation already accounts for a high fraction of demand (23 %), there are still no economic incentives for efficient wind forecast (wind balancing costs are passed to end consumers). We analyze the evolution of the balancing market from 2012 to 2016. Using actual costs provided by the Portuguese TSO, we find wind imbalance costs in the range of 2 to 4 EUR/MWh. These results surprisingly suggest that, even with large wind penetration and socialized imbalance costs, wind forecast errors can have a relatively low cost.

Original languageEnglish
Title of host publication15th International Conference on the European Energy Market, EEM 2018
PublisherIEEE Computer Society
Volume2018-June
ISBN (Electronic)9781538614884
DOIs
Publication statusPublished - 20 Sep 2018
Event15th International Conference on the European Energy Market, EEM 2018 - Lodz, Poland
Duration: 27 Jun 201829 Jun 2018

Conference

Conference15th International Conference on the European Energy Market, EEM 2018
CountryPoland
CityLodz
Period27/06/1829/06/18

Keywords

  • Power generation dispatch
  • Power systems
  • Renewable energy sources

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    Frade, P. M. S., Catalao, J. P. S., Pereira, J. P., & Santana, J. J. E. (2018). Balancing reserves in a power system with high wind penetration: evidence from Portugal. In 15th International Conference on the European Energy Market, EEM 2018 (Vol. 2018-June). [8469910] IEEE Computer Society. https://doi.org/10.1109/EEM.2018.8469910