IDEAS home Printed from https://ideas.repec.org/a/eee/rensus/v115y2019ics1364032119305684.html
   My bibliography  Save this article

On the participation of wind energy in response and reserve markets in Great Britain and Spain

Author

Listed:
  • Edmunds, Calum
  • Martín-Martínez, Sergio
  • Browell, Jethro
  • Gómez-Lázaro, Emilio
  • Galloway, Stuart

Abstract

Power systems require a wide range of ancillary services in order to function and renewables will be expected to provide such services in line with their increasing penetration. This paper focuses on the participation of wind energy in response and reserve markets. We compare the present situation in Great Britain (GB) and Spain, and make recommendations to support future development. Wind is already participating in a limited range of ancillary services in both countries: frequency response in GB and reserve services in Spain. We analyse the effects of market design, subsidy arrangements, and system-specific needs on participation of wind in these markets, and then make policy recommendations designed to enable increased participation from wind. Our recommendations include the use of short-term markets to enable the use of accurate wind power forecasts, capacity-based subsidy schemes to avoid distorting ancillary service markets, and facilitating the participation of aggregated (single and mixed technology) resources. Country-specific recommendations include revising the current settlement process in GB to remove the incentive to over-estimate short-term generation forecasts, and establishing a competitive frequency containment reserve market in Spain. These recommendations are supported by analysis of publicly available market data.

Suggested Citation

  • Edmunds, Calum & Martín-Martínez, Sergio & Browell, Jethro & Gómez-Lázaro, Emilio & Galloway, Stuart, 2019. "On the participation of wind energy in response and reserve markets in Great Britain and Spain," Renewable and Sustainable Energy Reviews, Elsevier, vol. 115(C).
    • Handle: RePEc:eee:rensus:v:115:y:2019:i:c:s1364032119305684
    DOI: 10.1016/j.rser.2019.109360
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1364032119305684
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.rser.2019.109360?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Petitet, Marie & Perrot, Marie & Mathieu, Sébastien & Ernst, Damien & Phulpin, Yannick, 2019. "Impact of gate closure time on the efficiency of power systems balancing," Energy Policy, Elsevier, vol. 129(C), pages 562-573.
    2. Casimir Lorenz & Clemens Gerbaulet, 2017. "Wind Providing Balancing Reserves: An Application to the German Electricity System of 2025," Discussion Papers of DIW Berlin 1655, DIW Berlin, German Institute for Economic Research.
    3. Fernandes, Camila & Frías, Pablo & Reneses, Javier, 2016. "Participation of intermittent renewable generators in balancing mechanisms: A closer look into the Spanish market design," Renewable Energy, Elsevier, vol. 89(C), pages 305-316.
    4. Siniscalchi-Minna, Sara & Bianchi, Fernando D. & De-Prada-Gil, Mikel & Ocampo-Martinez, Carlos, 2019. "A wind farm control strategy for power reserve maximization," Renewable Energy, Elsevier, vol. 131(C), pages 37-44.
    5. Rosales-Asensio, Enrique & Borge-Diez, David & Blanes-Peiró, Jorge-Juan & Pérez-Hoyos, Ana & Comenar-Santos, Antonio, 2019. "Review of wind energy technology and associated market and economic conditions in Spain," Renewable and Sustainable Energy Reviews, Elsevier, vol. 101(C), pages 415-427.
    6. Khoshrou, Abdolrahman & Dorsman, André B. & Pauwels, Eric J., 2019. "The evolution of electricity price on the German day-ahead market before and after the energy switch," Renewable Energy, Elsevier, vol. 134(C), pages 1-13.
    7. J. Charles Smith & Dale Osborn & Robert Zavadil & Warren Lasher & Emilio Gómez‐Lázaro & Ana Estanqueiro & Thomas Trotscher & John Tande & Magnus Korpås & Frans Van Hulle & Hannele Holttinen & Antje Or, 2013. "Transmission planning for wind energy in the United States and Europe: status and prospects," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 2(1), pages 1-13, January.
    8. Frade, P.M.S. & Santana, J.J.E. & Shafie-khah, M. & Catalão, J.P.S., 2018. "Impact of tertiary reserve sharing in Portugal," Utilities Policy, Elsevier, vol. 55(C), pages 167-177.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Agostini, Marco & Bertolini, Marina & Coppo, Massimiliano & Fontini, Fulvio, 2021. "The participation of small-scale variable distributed renewable energy sources to the balancing services market," Energy Economics, Elsevier, vol. 97(C).
    2. Morales-España, Germán & Nycander, Elis & Sijm, Jos, 2021. "Reducing CO2 emissions by curtailing renewables: Examples from optimal power system operation," Energy Economics, Elsevier, vol. 99(C).
    3. Kim, James Hyungkwan & Kahrl, Fredrich & Mills, Andrew & Wiser, Ryan & Montañés, Cristina Crespo & Gorman, Will, 2023. "Economic evaluation of variable renewable energy participation in U.S. ancillary services markets," Utilities Policy, Elsevier, vol. 82(C).
    4. Nouri, Reza & Vasel-Be-Hagh, Ahmad & Archer, Cristina L., 2020. "The Coriolis force and the direction of rotation of the blades significantly affect the wake of wind turbines," Applied Energy, Elsevier, vol. 277(C).
    5. Sun, Shilin & Wang, Tianyang & Chu, Fulei, 2022. "In-situ condition monitoring of wind turbine blades: A critical and systematic review of techniques, challenges, and futures," Renewable and Sustainable Energy Reviews, Elsevier, vol. 160(C).
    6. Gandhi, Oktoviano & Zhang, Wenjie & Kumar, Dhivya Sampath & Rodríguez-Gallegos, Carlos D. & Yagli, Gokhan Mert & Yang, Dazhi & Reindl, Thomas & Srinivasan, Dipti, 2024. "The value of solar forecasts and the cost of their errors: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 189(PB).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rancilio, G. & Rossi, A. & Falabretti, D. & Galliani, A. & Merlo, M., 2022. "Ancillary services markets in europe: Evolution and regulatory trade-offs," Renewable and Sustainable Energy Reviews, Elsevier, vol. 154(C).
    2. Hugo Algarvio & Fernando Lopes & António Couto & Ana Estanqueiro, 2019. "Participation of wind power producers in day‐ahead and balancing markets: An overview and a simulation‐based study," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 8(5), September.
    3. Carolina G. Marcelino & João V. C. Avancini & Carla A. D. M. Delgado & Elizabeth F. Wanner & Silvia Jiménez-Fernández & Sancho Salcedo-Sanz, 2021. "Dynamic Electric Dispatch for Wind Power Plants: A New Automatic Controller System Using Evolutionary Algorithms," Sustainability, MDPI, vol. 13(21), pages 1-20, October.
    4. Kim, James Hyungkwan & Kahrl, Fredrich & Mills, Andrew & Wiser, Ryan & Montañés, Cristina Crespo & Gorman, Will, 2023. "Economic evaluation of variable renewable energy participation in U.S. ancillary services markets," Utilities Policy, Elsevier, vol. 82(C).
    5. Ayman Al-Quraan & Bashar Al-Mhairat, 2022. "Intelligent Optimized Wind Turbine Cost Analysis for Different Wind Sites in Jordan," Sustainability, MDPI, vol. 14(5), pages 1-24, March.
    6. Behnam Zakeri & Samuli Rinne & Sanna Syri, 2015. "Wind Integration into Energy Systems with a High Share of Nuclear Power—What Are the Compromises?," Energies, MDPI, vol. 8(4), pages 1-35, March.
    7. Psarros, Georgios N. & Papathanassiou, Stavros A., 2023. "Generation scheduling in island systems with variable renewable energy sources: A literature review," Renewable Energy, Elsevier, vol. 205(C), pages 1105-1124.
    8. Schillinger, Moritz, 2019. "Balancing Market Design and Opportunity Cost - The Swiss Case," Working papers 2019/14, Faculty of Business and Economics - University of Basel.
    9. Angelica, Gianfreda & Lucia, Parisio & Matteo, Pelagatti, 2017. "The RES-induced Switching Effect Across Fossil Fuels: An Analysis of the Italian Day-Ahead and Balancing Prices and Their Connected Costs," Working Papers 360, University of Milano-Bicocca, Department of Economics, revised 03 Feb 2017.
    10. Erika Kaempf & Bernhard Ernst & Martin Braun, 2019. "Competitive cross‐voltage level procurement of reactive power considering reliable capacity from wind and photovoltaics," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 8(4), July.
    11. Lobato, E. & Doenges, K. & Egido, I. & Sigrist, L., 2020. "Limits to wind aggregation: Empirical assessment in the Spanish electricity system," Renewable Energy, Elsevier, vol. 147(P1), pages 1321-1330.
    12. Hugo Algarvio & Fernando Lopes & António Couto & Ana Estanqueiro & João Santana, 2019. "Variable Renewable Energy and Market Design: New Products and a Real-World Study," Energies, MDPI, vol. 12(23), pages 1-17, November.
    13. Xiaolin Ayón & María Ángeles Moreno & Julio Usaola, 2017. "Aggregators’ Optimal Bidding Strategy in Sequential Day-Ahead and Intraday Electricity Spot Markets," Energies, MDPI, vol. 10(4), pages 1-20, April.
    14. Klaus Skytte & Lucien Bobo, 2019. "Increasing the value of wind: From passive to active actors in multiple power markets," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 8(3), May.
    15. Brijs, Tom & De Jonghe, Cedric & Hobbs, Benjamin F. & Belmans, Ronnie, 2017. "Interactions between the design of short-term electricity markets in the CWE region and power system flexibility," Applied Energy, Elsevier, vol. 195(C), pages 36-51.
    16. Hu, Jing & Harmsen, Robert & Crijns-Graus, Wina & Worrell, Ernst & van den Broek, Machteld, 2018. "Identifying barriers to large-scale integration of variable renewable electricity into the electricity market: A literature review of market design," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P2), pages 2181-2195.
    17. Dong, Xinghui & Li, Jia & Gao, Di & Zheng, Kai, 2021. "Wind speed modeling for cascade clusters of wind turbines Part 2: Wind speed reduction and aggregation superposition," Energy, Elsevier, vol. 215(PB).
    18. Amirhossein Sajadi & Luka Strezoski & Vladimir Strezoski & Marija Prica & Kenneth A. Loparo, 2019. "Integration of renewable energy systems and challenges for dynamics, control, and automation of electrical power systems," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 8(1), January.
    19. Gianfreda, Angelica & Parisio, Lucia & Pelagatti, Matteo, 2018. "A review of balancing costs in Italy before and after RES introduction," Renewable and Sustainable Energy Reviews, Elsevier, vol. 91(C), pages 549-563.
    20. Parrado-Hernando, Gonzalo & Pfeifer, Antun & Frechoso, Fernando & Miguel González, Luis Javier & Duić, Neven, 2022. "A novel approach to represent the energy system in integrated assessment models," Energy, Elsevier, vol. 258(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:rensus:v:115:y:2019:i:c:s1364032119305684. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/600126/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.