Optimal configuration and diversification of wind turbines: A hybrid approach to improve the penetration of wind power

Leo Klie and Reinhard Madlener

Energy Economics, 2022, vol. 105, issue C

Abstract: Literature indicates a decline in the market value of wind power with increasing market penetration. Two promising measures to mitigate this market value drop are system-friendly turbines and geographic diversification. This study analyzes the combined potential of these two measures, introduced in this paper as the hybrid approach, to simultaneously improve market values, and to reduce system costs and the overall subsidy need in Germany. Therefore, promising diversification regions and site optimal turbine configurations are identified. The corresponding market values, levelized cost of electricity and system costs are predicted for variable renewable energy penetration rates of up to 65% (2030). The analysis shows that the market value drop in diversified regions using system-friendly turbines is less severe. Furthermore, the hybrid approach results in system cost and subsidy savings. Additional sensitivities show that the dominant share of the hybrid approach benefits can be attributed to the use of system-friendly turbines as only a small fracture of the hybrid approach savings is realized when using standard turbines instead of system-friendly ones. This leads to the conclusion that geographic diversification alone is not a promising approach to improve system costs and overall market values in Germany.

Keywords: Market value; Penetration of renewables; Cannibalization; System-friendly turbines; Geographic diversification (search for similar items in EconPapers)
JEL-codes: O25 P48 Q42 Q48 R32 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Related works:
Working Paper: Optimal Configuration and Diversification of Wind Turbines: A Hybrid Approach to Improve the Penetration of Wind Power (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:105:y:2022:i:c:s0140988321005454

DOI: 10.1016/j.eneco.2021.105692

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