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Phasing in wind-power in Norway: Network congestion and crowding-out of hydropower

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  • Førsund, Finn R.
  • Singh, Balbir
  • Jensen, Trond
  • Larsen, Cato

Abstract

The objective of this paper is to investigate the effects on utilisation of existing hydropower in a region of investing in significant wind-power in the region within the present network. Policy simulations are conducted using a dynamic system-wide model that is calibrated to reflect the structure of the Nordic power market. This model is the one used by the Norwegian electricity regulator and large hydropower companies in Norway for scheduling of hydro and market analyses. Simulations are carried out for different inflow situations based on past observations going back 60 years. Introduction of wind-power leads to significant increase in network congestion in the region, lower hydropower production, higher level of storage, increased spillage of water, and considerably lower price level in the local region in question.

Suggested Citation

  • Førsund, Finn R. & Singh, Balbir & Jensen, Trond & Larsen, Cato, 2008. "Phasing in wind-power in Norway: Network congestion and crowding-out of hydropower," Energy Policy, Elsevier, vol. 36(9), pages 3514-3520, September.
    • Handle: RePEc:eee:enepol:v:36:y:2008:i:9:p:3514-3520
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    References listed on IDEAS

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    1. Faria, Victor. A.D. & de Queiroz, Anderson Rodrigo & Lima, Luana M.M. & Lima, José W.M., 2018. "Cooperative game theory and last addition method in the allocation of firm energy rights," Applied Energy, Elsevier, vol. 226(C), pages 905-915.
    2. Engeland, Kolbjørn & Borga, Marco & Creutin, Jean-Dominique & François, Baptiste & Ramos, Maria-Helena & Vidal, Jean-Philippe, 2017. "Space-time variability of climate variables and intermittent renewable electricity production – A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 79(C), pages 600-617.
    3. Nesamalar, J. Jeslin Drusila & Venkatesh, P. & Raja, S. Charles, 2016. "Energy management by generator rescheduling in congestive deregulated power system," Applied Energy, Elsevier, vol. 171(C), pages 357-371.
    4. Richard Green and Nicholas Vasilakos, 2012. "Storing Wind for a Rainy Day: What Kind of Electricity Does Denmark Export?," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3).
    5. Etienne Billette de Villemeur and Pierre-Olivier Pineau, 2016. "Integrating Thermal and Hydro Electricity Markets: Economic and Environmental Costs of not Harmonizing Pricing Rules," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1).
    6. Denault, Michel & Dupuis, Debbie & Couture-Cardinal, Sébastien, 2009. "Complementarity of hydro and wind power: Improving the risk profile of energy inflows," Energy Policy, Elsevier, vol. 37(12), pages 5376-5384, December.
    7. Førsund, Finn R., 2009. "Energy in a Bathtub: Electricity Trade between Countries with Different Generation Technologies," Memorandum 17/2009, Oslo University, Department of Economics.
    8. Purvins, Arturs & Papaioannou, Ioulia T. & Oleinikova, Irina & Tzimas, Evangelos, 2012. "Effects of variable renewable power on a country-scale electricity system: High penetration of hydro power plants and wind farms in electricity generation," Energy, Elsevier, vol. 43(1), pages 225-236.
    9. Iglesias, Guillermo & Castellanos, Pablo & Seijas, Amparo, 2010. "Measurement of productive efficiency with frontier methods: A case study for wind farms," Energy Economics, Elsevier, vol. 32(5), pages 1199-1208, September.
    10. Deleidi, Matteo & Mazzucato, Mariana & Semieniuk, Gregor, 2020. "Neither crowding in nor out: Public direct investment mobilising private investment into renewable electricity projects," Energy Policy, Elsevier, vol. 140(C).
    11. Chu, Yin & Gao, Juanxia & Li, Haoyang, 2023. "Wind power expansion and regional allocative efficiency among fossil-fuel electricity generators," International Journal of Industrial Organization, Elsevier, vol. 91(C).
    12. Gupta, Akshita & Kumar, Arun & Khatod, Dheeraj Kumar, 2019. "Optimized scheduling of hydropower with increase in solar and wind installations," Energy, Elsevier, vol. 183(C), pages 716-732.
    13. Blindheim, Bernt, 2013. "Implementation of wind power in the Norwegian market; the reason why some of the best wind resources in Europe were not utilised by 2010," Energy Policy, Elsevier, vol. 58(C), pages 337-346.

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