 The impact of wind power on electricity pricesCarlo Brancucci Martinez-Anido, Greg Brinkman and Bri-Mathias Hodge Renewable Energy, 2016, vol. 94, issue C, 474-487 Abstract: This paper investigates the impact of wind power on electricity prices using a production cost model of the Independent System Operator – New England power system. Different scenarios in terms of wind penetration, wind forecasts, and wind curtailment are modeled in order to analyze the impact of wind power on electricity prices for different wind penetration levels and for different levels of wind power visibility and controllability. The analysis concludes that electricity price volatility increases even as electricity prices decrease with increasing wind penetration levels. The impact of wind power on price volatility is larger in the shorter term (5-min compared to hour-to-hour). The results presented show that over-forecasting wind power increases electricity prices while under-forecasting wind power reduces them. The modeling results also show that controlling wind power by allowing curtailment increases electricity prices, and for higher wind penetrations it also reduces their volatility. Keywords: Wind power; Electricity price; Production cost modeling; Wind forecasting; Wind power curtailment (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:renene:v:94:y:2016:i:c:p:474-487 DOI: 10.1016/j.renene.2016.03.053 Access Statistics for this article Renewable Energy is currently edited by Soteris A. Kalogirou and Paul Christodoulides More articles in Renewable Energy from Elsevier |
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