 Area price and demand response in a market with 25% wind powerPoul Erik Grohnheit, Frits Møller Andersen and Helge V. Larsen Energy Policy, 2011, vol. 39, issue 12, 8051-8061 Abstract: Denmark, east and west of the Great Belt are bidding areas with separate hourly area prices for the Nord Pool power exchange, covering four Nordic countries and parts of Germany. The share of wind power has now increased to 25% on an annual basis in western Denmark. This has a significant impact not only on the electricity wholesale prices, but also on the development of the market. Hourly market data are available from the website of Danish TSO from 1999. In this paper these data are analysed for the period 2004–2010. Electricity generators and customers may respond to hourly price variations, which can improve market efficiency, and a welfare gain is obtained. An important limitation for demand response is events of several consecutive hours with extreme values. The analysis in this paper is a summary and update of some of the issues covered by the EU RESPOND project. It shows that extreme events were few, and the current infrastructure and market organisation have been able to handle the amount of wind power installed so far. This recommends that geographical bidding area for the wholesale electricity market reflects external transmission constraints caused by wind power. Keywords: Wind power; Nord Pool; Western Denmark (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:enepol:v:39:y:2011:i:12:p:8051-8061 DOI: 10.1016/j.enpol.2011.09.060 Access Statistics for this article Energy Policy is currently edited by N. France More articles in Energy Policy from Elsevier |
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