Storing Wind for a Rainy Day: What Kind of Electricity Does Denmark Export?

Richard Green and Nicholas Vasilakos ()

Discussion Papers from Department of Economics, University of Birmingham

Abstract: On windy days, Denmark tends to export electricity to its neighbours, and to import power on calm days. Storing electricity in this way thus allows the country to deal with the intermittency of wind generation. We show that this kind of behaviour is theoretically optimal when a region with wind and thermal generation can trade with one based on hydro power. However, annual trends in Denmark's trade follow its output of thermal generation, Nordic production of hydro power, and the amount of water available to Scandinavian generators, not wind generation. We estimate the cost of volatility in Denmark's wind output to equal between 4% and 8% of its market value.

Keywords: Electricity; Wind generation; Hydro generation; storage; international trade (search for similar items in EconPapers)
JEL-codes: D43 L13 L94 Q41 Q42 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2010-07
New Economics Papers: this item is included in nep-ene and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (22)

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https://repec.cal.bham.ac.uk/pdf/10-19.pdf

Related works:
Journal Article: Storing Wind for a Rainy Day: What Kind of Electricity Does Denmark Export? (2012)
Journal Article: Storing Wind for a Rainy Day: What Kind of Electricity Does Denmark Export? (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:bir:birmec:10-19

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