The "hidden cost" of renewable energy sources in electricity pool markets
Date
2012Sujet
Résumé
The aim of this paper is to explore the "hidden cost" associated with the uncertainty in power generation that Renewable Energy Sources (RES) introduce in electricity pool markets. This cost, which is additional to the more obvious cost originating from the high RES feed-in tariffs, is due to two main factors. Firstly, the RES generation forecast error, which reflects this uncertainty, may increase the deviations of the day-ahead scheduled energy of conventional generation from the actual one, possibly incurring an extra cost at the ex post settlement stage. Secondly, the increased need for ancillary services, to better respond to the RES uncertainty, may also incur an additional cost. The combination of these two factors affects the unit commitment and dispatching and hence the potential recovery payments associated with the non-convexities of the market design. To explore these hidden costs, we simulate a model of the Greek wholesale electricity market for several scenarios of the RES penetration level, forecast accuracy, and ancillary services requirements, using historical data, and discuss the results. © 2012 IEEE.
Collections
Related items
Showing items related by title, author, creator and subject.
-
Electricity markets meet the home through demand response
Gkatzikis, L.; Salonidis, T.; Hegde, N.; Massoulie, L. (2012)Demand response (DR) programs motivate home users through dynamic pricing to shift electricity consumption from peak demand periods. In this paper, we introduce a day ahead electricity market where the operator sets the ... -
Impact of emissions cost on the mid-term generation scheduling in the Greek Electricity Market
Andrianesis, P.; Liberopoulos, G.; Biskas, P. (2010)The EU Emissions Trading Scheme, Europe's main mechanism for implementing EU climate policy, is driving thermal electricity generation units to incorporate their emissions cost into their variable costs. In this paper, we ... -
Load management of electric vehicles charging in new generation power markets based on fuzzy logic and the concept of virtual budget
Fainti R., Karasimou M., Tsionas I., Tsoukalas L.H., Alamaniotis M. (2019)The aim of the current study is the development and the evaluation of a fully automated controller based on fuzzy logic for the control of the charging time of Electric Vehicles (EVs) based on user's preferences and the ...