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

Fingerprint

Costs
Power generation
Portugal
Power system
Penetration
Economics
Imbalance
Economic incentives
Forecast error

Keywords

  • Power generation dispatch
  • Power systems
  • Renewable energy sources

Cite this

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
Frade, Pedro M.S. ; Catalao, J. P.S. ; Pereira, João Pedro ; Santana, J. J.E. / Balancing reserves in a power system with high wind penetration : evidence from Portugal. 15th International Conference on the European Energy Market, EEM 2018. Vol. 2018-June IEEE Computer Society, 2018.
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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.",
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author = "Frade, {Pedro M.S.} and Catalao, {J. P.S.} and Pereira, {Jo{\~a}o Pedro} and Santana, {J. J.E.}",
note = "Category numberCFP1852D-ART, Code 140130. Financial support from the following institutions is gratefully acknowledged: FCT-Fundac{\~a}o para a Ci{\^e}ncia e Tecnologia (UID/ECO/00124/2013 and Social Sciences DataLab, Project 22209), POR Lisboa (LISBOA-01-0145-FEDER-007722 and Social Sciences DataLab, Project 22209) and POR Norte (Social Sciences DataLab, Project 22209).",
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Frade, PMS, Catalao, JPS, Pereira, JP & Santana, JJE 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, 15th International Conference on the European Energy Market, EEM 2018, Lodz, Poland, 27/06/18. https://doi.org/10.1109/EEM.2018.8469910

Balancing reserves in a power system with high wind penetration : evidence from Portugal. / Frade, Pedro M.S.; Catalao, J. P.S.; Pereira, João Pedro; Santana, J. J.E.

15th International Conference on the European Energy Market, EEM 2018. Vol. 2018-June IEEE Computer Society, 2018. 8469910.

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

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N1 - Category numberCFP1852D-ART, Code 140130. Financial support from the following institutions is gratefully acknowledged: FCT-Fundacão para a Ciência e Tecnologia (UID/ECO/00124/2013 and Social Sciences DataLab, Project 22209), POR Lisboa (LISBOA-01-0145-FEDER-007722 and Social Sciences DataLab, Project 22209) and POR Norte (Social Sciences DataLab, Project 22209).

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Frade PMS, Catalao JPS, Pereira JP, Santana JJE. 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. IEEE Computer Society. 2018. 8469910 https://doi.org/10.1109/EEM.2018.8469910