Title :
An electricity market model to estimate the marginal value of wind in an adapting system
Author :
Swider, Derk J. ; Weber, Christoph
Author_Institution :
Inst. of Energy Econ., Stuttgart Univ.
Abstract :
In this paper a stochastic fundamental electricity market model is presented. The model´s principle is cost minimization by determining the marginal system costs mainly as a function of available generation and transmission capacities, primary energy prices, plant characteristics and electricity demand. To obtain appropriate estimates of the marginal value of wind in an adapting system notably reduced efficiencies at part load, start-up costs and reserve power requirements are taken into account. The intermittency of wind is covered by a stochastic recombining tree and the system is considered to adapt on increasing wind integration over time by endogenous modeling of investments in thermal power plants. Exemplary results are presented for a German case study
Keywords :
investment; power generation economics; power markets; pricing; stochastic processes; thermal power stations; German case study; adapting system; cost minimization; electricity demand; electricity market model; generation capacities; marginal system costs; primary energy prices; reserve power requirements; start-up costs; stochastic fundamental; thermal power plants; transmission capacities; wind integration; wind marginal value estimation; Cost function; Electricity supply industry; Electronic mail; Investments; Large scale integration; Power generation; Power system modeling; Stochastic processes; Stochastic systems; Wind energy generation;
Conference_Titel :
Power Engineering Society General Meeting, 2006. IEEE
Conference_Location :
Montreal, Que.
Print_ISBN :
1-4244-0493-2
DOI :
10.1109/PES.2006.1709088
