Changing the Day-Ahead Gate Closure to Wind Power Integration: A Simulation-Based Study

Hugo Algarvio, António Couto, Fernando Lopes and Ana Estanqueiro
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Hugo Algarvio: LNEG–National Laboratory of Energy and Geology, 1649-038 Lisbon, Portugal
António Couto: LNEG–National Laboratory of Energy and Geology, 1649-038 Lisbon, Portugal
Fernando Lopes: LNEG–National Laboratory of Energy and Geology, 1649-038 Lisbon, Portugal
Ana Estanqueiro: LNEG–National Laboratory of Energy and Geology, 1649-038 Lisbon, Portugal

Energies, 2019, vol. 12, issue 14, 1-20

Abstract: Currently, in most European electricity markets, power bids are based on forecasts performed 12 to 36 hours ahead. Actual wind power forecast systems still lead to large errors, which may strongly impact electricity market outcomes. Accordingly, this article analyzes the impact of the wind power forecast uncertainty and the change of the day-ahead market gate closure on both the market-clearing prices and the outcomes of the balancing market. To this end, it presents a simulation-based study conducted with the help of an agent-based tool, called MATREM. The results support the following conclusion: a change in the gate closure to a time closer to real-time operation is beneficial to market participants and the energy system generally.

Keywords: day-ahead market; balancing market; gate closure; forecast uncertainty; wind power forecast; agent-based simulation; the MATREM system (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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