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

doi:10.1109/EEM.2018.8469910

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

NOVA School of Business and Economics (NOVA SBE)

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › peer-review

1 Citation (Scopus)

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 language	English
Title of host publication	15th International Conference on the European Energy Market, EEM 2018
Publisher	IEEE Computer Society
Volume	2018-June
ISBN (Electronic)	9781538614884
DOIs	https://doi.org/10.1109/EEM.2018.8469910
Publication status	Published - 20 Sept 2018
Event	15th International Conference on the European Energy Market, EEM 2018 - Lodz, Poland Duration: 27 Jun 2018 → 29 Jun 2018

Conference

Conference	15th International Conference on the European Energy Market, EEM 2018
Country/Territory	Poland
City	Lodz
Period	27/06/18 → 29/06/18

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 7 Affordable and Clean Energy

Keywords

Power generation dispatch
Power systems
Renewable energy sources

Access to Document

10.1109/EEM.2018.8469910

Cite this

@inproceedings{f45f7c782b9643a9a5ee651ffa714b51,

title = "Balancing reserves in a power system with high wind penetration: evidence from Portugal",

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.",

keywords = "Power generation dispatch, Power systems, Renewable energy sources",

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). ; 15th International Conference on the European Energy Market, EEM 2018 ; Conference date: 27-06-2018 Through 29-06-2018",

year = "2018",

month = sep,

day = "20",

doi = "10.1109/EEM.2018.8469910",

language = "English",

volume = "2018-June",

booktitle = "15th International Conference on the European Energy Market, EEM 2018",

publisher = "IEEE Computer Society",

address = "United States",

}

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 et al.
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 proceeding › Conference contribution › peer-review

TY - GEN

T1 - Balancing reserves in a power system with high wind penetration

T2 - 15th International Conference on the European Energy Market, EEM 2018

AU - Frade, Pedro M.S.

AU - Catalao, J. P.S.

AU - Pereira, João Pedro

AU - Santana, J. J.E.

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).

PY - 2018/9/20

Y1 - 2018/9/20

N2 - 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.

AB - 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.

KW - Power generation dispatch

KW - Power systems

KW - Renewable energy sources

UR - https://www.scopus.com/pages/publications/85055552132

U2 - 10.1109/EEM.2018.8469910

DO - 10.1109/EEM.2018.8469910

M3 - Conference contribution

AN - SCOPUS:85055552132

VL - 2018-June

BT - 15th International Conference on the European Energy Market, EEM 2018

PB - IEEE Computer Society

Y2 - 27 June 2018 through 29 June 2018

ER -

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

Abstract

Conference

UN SDGs

Keywords

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