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Market based integration of windpower

Market based integration of windpower. Hans Erik Kristoffersen Energinet.dk. Capacity expansion – 4.600 MW offshore. Present. 2025. Example on balance with an additional 2500 MW off shore wind and 1000 MW on shore wind. Min. Production. Consumption. Windpower.

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Market based integration of windpower

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  1. Market based integration of windpower Hans Erik Kristoffersen Energinet.dk

  2. Capacity expansion – 4.600 MW offshore

  3. Present 2025 Example on balance with an additional2500 MW off shore wind and 1000 MW on shore wind Min. Production Consumption Windpower Min. Production Consumption Windpower

  4. Wind power and the spot-price

  5. Curtailment of sales bids • Scarcity of transmissions capacity and consumption in a few hours during the year results in curtailment of sales bids. Current market rules makes market clearing impossible during these hours • With the current price floor producers do not react to the real price of electricity • Wind power only makes up half of the average production in hours with curtailment in Western Denmark -> There is a need for increased flexibility in thermal power production • Negative spot-prices will introduce a market based solution for hours without market clearing today

  6. Subsidies for wind power in Denmark € cent/kWh € cent/kWh Offshore wind farms • Tender process. • Fixed Payment = Market Price + Subsidy. • Payment for 20 TWh or 20 years • Negative prices at Nord Pool Spot => No subsidies for offshore wind power when prices becomes negative (max 300 hours). Time Time Onshore wind farms • Payment = Market Price + Price premium • Price premium: DKK 0,25 per kWh for 22.000 full load hours + 0,023 DKK for balancing costs • May also choose a decommissioning certificates of either DKK 0,12 or 0,08 DKK per kWh. Biogas and biomass • Payment = Market Price + Price premium • Price premium: DKK 0,745 per kWh for biogas and DKK 0,015 per kWh for biomass per kWh.

  7. Thank you for your attention

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