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

Richard Green and Nicholas Vasilakos
Authors registered in the RePEc Author Service: Richard John Green

The Energy Journal, 2012, vol. Volume 33, issue Number 3

Abstract: Physical laws mean that it is generally impossible to identify which power stations are exporting to another country, but economic logic offers strong clues. 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 and are inversely related to Nordic production of hydro power and the amount of water available to Scandinavian generators, with no correlation with wind generation. We estimate the cost of volatility in Denmark's wind output to equal between 4% and 8% of its market value.

JEL-codes: F0 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (40)

Downloads: (external link)
http://www.iaee.org/en/publications/ejarticle.aspx?id=2484 (text/html)
Access to full text is restricted to IAEE members and subscribers.

Related works:
Journal Article: Storing Wind for a Rainy Day: What Kind of Electricity Does Denmark Export? (2012)
Working Paper: Storing Wind for a Rainy Day: What Kind of Electricity Does Denmark Export? (2010)
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:aen:journl:33-3-01

Ordering information: This journal article can be ordered from
http://www.iaee.org/en/publications/ejsearch.aspx

Access Statistics for this article

More articles in The Energy Journal from International Association for Energy Economics Contact information at EDIRC.
Bibliographic data for series maintained by David Williams (iaee@iaee.org).