IDEAS home Printed from https://ideas.repec.org/a/eee/rensus/v15y2011i9p5003-5012.html
   My bibliography  Save this article

Market evaluation of hybrid wind-storage power systems in case of balancing responsibilities

Author

Listed:
  • Loisel, Rodica
  • Mercier, Arnaud
  • Gatzen, Christoph
  • Elms, Nick

Abstract

This study investigates the economics of a wind power farm with a long-term market perspective, considering high shares of wind energy, constraints set on the energy variability, and the removal of support schemes such as feed-in tariffs. The contractual agreement with a compressed air energy storage facility (CAES) would create a hybrid wind-storage system that would allow a wind power operator to reduce the intermittency of its output and to provide flexibility to the system. The study gives a market value to the wind power at a project level of several gigawatts capacity located in France, by using a technical and economic optimization model. Results indicate the cost of balancing the intermittency for the wind operator and show that under baseline conditions, the hybrid wind-storage system would have negative profits despite price arbitrage operations and ancillary services provided to the system. Alternative tests show that the economics can improve when the influence of the wind power on the spot price is accounted for. The study is focused on the long term market situation in France, which is characterized by increased balancing needs, an ageing infrastructure, uncertainties in carbon and gas prices, and increased power imports.

Suggested Citation

  • Loisel, Rodica & Mercier, Arnaud & Gatzen, Christoph & Elms, Nick, 2011. "Market evaluation of hybrid wind-storage power systems in case of balancing responsibilities," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(9), pages 5003-5012.
    • Handle: RePEc:eee:rensus:v:15:y:2011:i:9:p:5003-5012
    DOI: 10.1016/j.rser.2011.07.054
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1364032111002954
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.rser.2011.07.054?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. Hiroux, C. & Saguan, M., 2010. "Large-scale wind power in European electricity markets: Time for revisiting support schemes and market designs?," Energy Policy, Elsevier, vol. 38(7), pages 3135-3145, July.
    2. Loisel, Rodica & Mercier, Arnaud & Gatzen, Christoph & Elms, Nick & Petric, Hrvoje, 2010. "Valuation framework for large scale electricity storage in a case with wind curtailment," Energy Policy, Elsevier, vol. 38(11), pages 7323-7337, November.
    3. Leen Vandezande & Leonardo Meeus & Ronnie Belmans & Marcelo Saguan & Jean-Michel Glachant & Vincent Rious, 2009. "Lacking balancing market harmonisation in Europe: room for trader profits at the expense of economic efficiency?," Post-Print hal-00422185, HAL.
    4. Greenblatt, Jeffery B. & Succar, Samir & Denkenberger, David C. & Williams, Robert H. & Socolow, Robert H., 2007. "Baseload wind energy: modeling the competition between gas turbines and compressed air energy storage for supplemental generation," Energy Policy, Elsevier, vol. 35(3), pages 1474-1492, March.
    5. Østergaard, Poul Alberg, 2006. "Ancillary services and the integration of substantial quantities of wind power," Applied Energy, Elsevier, vol. 83(5), pages 451-463, May.
    6. Sáenz de Miera, Gonzalo & del Ri­o González, Pablo & Vizcaino, Ignacio, 2008. "Analysing the impact of renewable electricity support schemes on power prices: The case of wind electricity in Spain," Energy Policy, Elsevier, vol. 36(9), pages 3345-3359, September.
    7. Kaldellis, J.K. & Kapsali, M. & Kavadias, K.A., 2010. "Energy balance analysis of wind-based pumped hydro storage systems in remote island electrical networks," Applied Energy, Elsevier, vol. 87(8), pages 2427-2437, August.
    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. Loisel, Rodica & Pasaoglu, Guzay & Thiel, Christian, 2014. "Large-scale deployment of electric vehicles in Germany by 2030: An analysis of grid-to-vehicle and vehicle-to-grid concepts," Energy Policy, Elsevier, vol. 65(C), pages 432-443.
    2. Venkataramani, Gayathri & Parankusam, Prasanna & Ramalingam, Velraj & Wang, Jihong, 2016. "A review on compressed air energy storage – A pathway for smart grid and polygeneration," Renewable and Sustainable Energy Reviews, Elsevier, vol. 62(C), pages 895-907.
    3. Tong, Shuiguang & Cheng, Zhewu & Cong, Feiyun & Tong, Zheming & Zhang, Yidong, 2018. "Developing a grid-connected power optimization strategy for the integration of wind power with low-temperature adiabatic compressed air energy storage," Renewable Energy, Elsevier, vol. 125(C), pages 73-86.
    4. Dowling, Alexander W. & Zheng, Tian & Zavala, Victor M., 2017. "Economic assessment of concentrated solar power technologies: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 72(C), pages 1019-1032.
    5. Ricardo Bessa & Carlos Moreira & Bernardo Silva & Manuel Matos, 2014. "Handling renewable energy variability and uncertainty in power systems operation," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 3(2), pages 156-178, March.
    6. Zafirakis, Dimitrios & Chalvatzis, Konstantinos J. & Baiocchi, Giovanni & Daskalakis, George, 2013. "Modeling of financial incentives for investments in energy storage systems that promote the large-scale integration of wind energy," Applied Energy, Elsevier, vol. 105(C), pages 138-154.

    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. 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.
    2. Haas, J. & Cebulla, F. & Cao, K. & Nowak, W. & Palma-Behnke, R. & Rahmann, C. & Mancarella, P., 2017. "Challenges and trends of energy storage expansion planning for flexibility provision in low-carbon power systems – a review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 80(C), pages 603-619.
    3. Díaz-González, Francisco & Sumper, Andreas & Gomis-Bellmunt, Oriol & Villafáfila-Robles, Roberto, 2012. "A review of energy storage technologies for wind power applications," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(4), pages 2154-2171.
    4. Ketterer, Janina C., 2014. "The impact of wind power generation on the electricity price in Germany," Energy Economics, Elsevier, vol. 44(C), pages 270-280.
    5. Henriot, Arthur & Glachant, Jean-Michel, 2013. "Melting-pots and salad bowls: The current debate on electricity market design for integration of intermittent RES," Utilities Policy, Elsevier, vol. 27(C), pages 57-64.
    6. Jean-Michel Glachant & Arthur Henriot, 2013. "Melting-pots and salad bowls: the current debate on electricity market design for RES integration," Working Papers EPRG 1329, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    7. Jägemann, Cosima, 2014. "An illustrative note on the system price effect of wind and solar power - The German case," EWI Working Papers 2014-10, Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI).
    8. Zafirakis, Dimitrios & Chalvatzis, Konstantinos J. & Baiocchi, Giovanni & Daskalakis, George, 2013. "Modeling of financial incentives for investments in energy storage systems that promote the large-scale integration of wind energy," Applied Energy, Elsevier, vol. 105(C), pages 138-154.
    9. Madlener, Reinhard & Latz, Jochen, 2013. "Economics of centralized and decentralized compressed air energy storage for enhanced grid integration of wind power," Applied Energy, Elsevier, vol. 101(C), pages 299-309.
    10. De Jonghe, Cedric & Delarue, Erik & Belmans, Ronnie & D'haeseleer, William, 2011. "Determining optimal electricity technology mix with high level of wind power penetration," Applied Energy, Elsevier, vol. 88(6), pages 2231-2238, June.
    11. Qin, Chao & Loth, Eric, 2014. "Liquid piston compression efficiency with droplet heat transfer," Applied Energy, Elsevier, vol. 114(C), pages 539-550.
    12. Blanco, Herib & Faaij, André, 2018. "A review at the role of storage in energy systems with a focus on Power to Gas and long-term storage," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P1), pages 1049-1086.
    13. Kondziella, Hendrik & Bruckner, Thomas, 2016. "Flexibility requirements of renewable energy based electricity systems – a review of research results and methodologies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 53(C), pages 10-22.
    14. Cédric Clastres & T.T. Ha Pham & F. Wurtz & S. Bacha, 2010. "Optimal household energy management and participation in ancillary services with PV production," Post-Print halshs-00323576, HAL.
    15. Peeter Pikk & Marko Viiding, 2013. "The dangers of marginal cost based electricity pricing," Baltic Journal of Economics, Baltic International Centre for Economic Policy Studies, vol. 13(1), pages 49-62, July.
    16. Krajačić, Goran & Lončar, Dražen & Duić, Neven & Zeljko, Mladen & Lacal Arántegui, Roberto & Loisel, Rodica & Raguzin, Igor, 2013. "Analysis of financial mechanisms in support to new pumped hydropower storage projects in Croatia," Applied Energy, Elsevier, vol. 101(C), pages 161-171.
    17. Lund, Peter D. & Lindgren, Juuso & Mikkola, Jani & Salpakari, Jyri, 2015. "Review of energy system flexibility measures to enable high levels of variable renewable electricity," Renewable and Sustainable Energy Reviews, Elsevier, vol. 45(C), pages 785-807.
    18. Genoese, Massimo & Slednev, Viktor & Fichtner, Wolf, 2016. "Analysis of drivers affecting the use of market premium for renewables in Germany," Energy Policy, Elsevier, vol. 97(C), pages 494-506.
    19. Clastres, C. & Ha Pham, T.T. & Wurtz, F. & Bacha, S., 2010. "Ancillary services and optimal household energy management with photovoltaic production," Energy, Elsevier, vol. 35(1), pages 55-64.
    20. Narbel, Patrick A., 2014. "Rethinking how to support intermittent renewables," Energy, Elsevier, vol. 77(C), pages 414-421.

    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:15:y:2011:i:9:p:5003-5012. 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.