1 / 17

Renewable Energy Integration: Quantifying the Value of Market Design Karsten Neuhoff,

Renewable Energy Integration: Quantifying the Value of Market Design Karsten Neuhoff,

langer
Download Presentation

Renewable Energy Integration: Quantifying the Value of Market Design Karsten Neuhoff,

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Renewable Energy Integration: Quantifying the Value of Market Design Karsten Neuhoff, David Newbery, Christian von Hirschhausen, Benjamin Hobbs, Christoph Weber, JanuszBialek, FriederBorggrefe, Julian Barquin, Christian Nabe, Chris Dent, Francisco M. Echavarren, Rodney Boyd, ThiloGrau, Friedrich Kunz, George Papaefthymiou, HannesWeigt 34th IAEE International Conference, Stockholm, June 20 2011

  2. Projected installation of new generation capacity Source: EMPLOY-RES Studie

  3. Current Landscape • Naturally evolved into 29 separated, individual regions with 38 TSOs - 300,000km transmission lines • Mosaic means TSOs charged with security in their region only… Cross-border Physical Flows – 28 March 2011, 09:00-10:00 (source: www.etso-vista.org)

  4. Based on: Borggrefe and Neuhoff 2010: Balancing and Intraday Market Design – Options for wind integration

  5. Generation technologies mix used in the models. Distribution of the aggregate wind in-feed for the 2008 (H) TradeWind scenario and the respective snapshots.

  6. Comparison of selected actual market prices for power products for Wednesday 16 January 2008 (bars) and simulated prices

  7. Zones for zonal pricing do not match national borders No wind Source: Model results from the Intelligent Energy Europe project Re-shaping

  8. And zones with similar price change with wind output Max wind Suitable zones in congested network can change hour by hour Source: Model results from the Intelligent Energy Europe project Re-shaping

  9. Distribution of branch loads (as a fraction of capacity) for the analysed high wind scenario

  10. Congested Lines are within and between EU Countries • Transmission not allocated within market – TSO have to buy back capacity • -> inefficient, costly and creates opportunities for gaming. • TSO not informed about state of the European power system • make very conservative use of transmission lines • lack of information exchange main cause for black-outs

  11. Respectingloopflows ... Source: P. Bonnard, 2003 IEEE Trans. Distr. Conf

  12. Calculating Transfer capacity Definition + Net transfercapacity (NTC) + Transmission Reliability Margin (TRM) = Total Transfer capacity (TTC) Calculationof TTC Howmuch G increase in A canmeet D increase in B, whilekeeping G,D fixedforother countries (i) scaling G (ii) scaling G<= G (iii) meritorder

  13. EU-wide volume weighted prices from DRESDEN model.

  14. Results: Nodal Pricing Study • We compared a nodal design to two zonal pricing approaches – with Madrid Comillas and Dresden Technical Universities.

  15. AEP / Dayton / ComEd Integration into the PJM Market Change in Transmission Interconnector flows • Key Study Conclusions: • Bilateral Trading could only achieve 40% of the efficiency gains of LMP-based market • Incremental benefit of LMP Market Integration = $180 Million annually, Net Present Value over 20 yrs is $1.5 Billion Source: Erin T. Mansur and Matthew W. White, “Market Organization and Efficiency in Electricity Markets,” March 31, 2009, Figure 2,pg 50, discussion draft, (available at http://bpp.wharton.upenn.edu/mawhite/ ). (based on presentation by Andy Ott, PJM) www.pjm.com

  16. Savings - €0.8 - 2 billion per annum

  17. Multiple dimensionsofcongestionmanagement Source: Congestion Management in European Power Networks: Criteria to Assess the Available Options, Neuhoff, Hobbs, Newbery

More Related