Impacts of intermittent renewable generation on electricity system costs

Joan Batalla-Bejerano and Elisa Trujillo-Baute

No 2015/17, Working Papers from Institut d'Economia de Barcelona (IEB)

Abstract: A successful deployment of power generation coming from variable renewable sources (VRES-E), such as wind and solar photovoltaic, strongly depends on the economic cost of system integration. This paper, in seeking to look beyond the impact of RES-E generation on the evolution of the total economic costs associated with the operation of the electricity system, aims to estimate the sensitivity of balancing market requirements and costs to the variable and non-fully predictable nature of intermittent renewable generation. The estimations reported in this paper for the Spanish electricity system stress the importance of both attributes as well as power system flexibility when accounting for the cost of balancing services.

Keywords: Electricity market design; balancing services; renewable energy; variable and intermittent generation; system flexibility (search for similar items in EconPapers)
JEL-codes: D47 L51 Q41 Q42 Q47 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2015
New Economics Papers: this item is included in nep-ene and nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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Related works:
Journal Article: Impacts of intermittent renewable generation on electricity system costs (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:ieb:wpaper:doc2015-17

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