Measuring the impact of wind power and intermittency

Claire Petersen, Mar Reguant*, Lola Segura

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

1 Scopus citations

Abstract

Wind power is crucial to decarbonizing electricity markets but is intermittent, which complicates operational management. We assess the welfare impact of wind power on the Spanish electricity market during the years 2009–2018, with a focus on how wind impacts congestion and reliability costs. In the baseline results, for an additional GWh of forecasted wind generation, we estimate that operational costs go up by about 0.19 EUR/MWh compared to an average of 3.85 EUR/MWh. We find no evidence of these marginal impacts significantly increasing with wind availability. Using detailed bidding data for congestion and reliability markets, we highlight how changes in market design can reduce the negative impacts of wind power on the operation of the grid.

Original languageEnglish (US)
Article number107200
JournalEnergy Economics
Volume129
DOIs
StatePublished - Jan 2024

Keywords

  • Electricity markets
  • Energy transition
  • Intermittency
  • Wind power

ASJC Scopus subject areas

  • Economics and Econometrics
  • General Energy

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