Day-Ahead versus Intraday Valuation of Demand-Side Flexibility for Photovoltaic and Wind Power Systems

Ernesto Garnier () and Reinhard Madlener
Additional contact information
Ernesto Garnier: RWTH Aachen University, Postal: Templergraben 55, 52056 Aachen, Germany

No 17/2014, FCN Working Papers from E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN)

Abstract: This paper explores the economic benefits that wind and photovoltaic power plant operators can extract from the activation of flexible loads during their market operations. We compare two alternatives: (1) use of flexible loads to maximize relative day-ahead market value by shifting the portfolio balance in view of day-ahead price developments; (2) use of flexible loads in intraday operations to minimize the costs incurred when balancing forecast errors. We find that the latter option yields greater value than the former, both from an analytical and a market data perspective. On these grounds, we propose a model to shift loads before trading production forecast errors in continuous-trade intraday markets under uncertainty. In an illustrative example, the model is applied to simulate the trade operations of a small-scale wind power operator in the German power market with access to a limited pool of flexible loads in the household segment. The simulation demonstrates that demand-side flexibility can yield significant cost reductions; the extent is influenced by the volatility of prices and the time spans across which loads can be shifted.

Keywords: - (search for similar items in EconPapers)
Pages: 38 pages
Date: 2014-11
New Economics Papers: this item is included in nep-cmp and nep-ene
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.fcn.eonerc.rwth-aachen.de/global/show_document.asp?id=aaaaaaaaaaljary Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ris:fcnwpa:2014_017

Access Statistics for this paper

More papers in FCN Working Papers from E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN) Contact information at EDIRC.
Bibliographic data for series maintained by Hendrik Schmitz ().