Modelling the impact of wind generation on electricity market prices in Ireland: An econometric versus unit commitment approach

Eleanor Denny (), Amy O'Mahoney and Eamonn Lannoye

Renewable Energy, 2017, vol. 104, issue C, 109-119

Abstract: The aim of this research is to assess the impact of wind generation on electricity market prices using two different approaches: an econometric regression model and a unit commitment model (the latter being a methodological approach favoured by the engineering discipline). Overall, the findings of this paper indicate that wind generation reduces the marginal price on the case study electricity system, a result which is consistent across both methodological approaches. The level of savings is non-trivial and in the order of 4–5.4% of total dispatch cost. It is also found that the relationship between wind and prices is linear. The majority of literature in this area uses either an econometric or a unit commitment approach but not both, thus this paper allows for the isolation of the impact of modelling approach on the results. It finds that the results from both methods are comparable and the choice of modelling approach influences the results by just 1.4%. Thus, depending on the type of analysis required, an ex-post econometric model may be preferred by policy makers to an ex-post unit commitment model given the significant reduction in data requirements and computational time involved.

Keywords: Renewable resources; Marginal pricing; Wind; Merit order; Unit commitment (search for similar items in EconPapers)
JEL-codes: C51 D44 Q41 Q42 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S096014811630965X
Full text for ScienceDirect subscribers only

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:eee:renene:v:104:y:2017:i:c:p:109-119

DOI: 10.1016/j.renene.2016.11.003

Access Statistics for this article

Renewable Energy is currently edited by Soteris A. Kalogirou and Paul Christodoulides

More articles in Renewable Energy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().