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Regional electricity price differences due to intermittent wind power in Germany: impact of extended transmission and storage capacities

Author

Listed:
  • Rudiger Barth
  • Heike Brand
  • Derk Jan Swider
  • Christoph Weber
  • Peter Meibom

Abstract

A fast growth of installed wind power capacity has been experienced in several European countries. In Germany, notably high wind power capacities are planned in the North. If the existing transmission capacities between individual regions become insufficient, the electricity prices will differ considerably and the system operation can become unstable. It is supposed that the extension of transmission capacities and the use of energy storages avoid this separation of individual regions. In this paper, the arising price differences between regions in Germany are estimated using a novel stochastic linear optimisation model that optimises the efficient power market operation on an hourly basis. To estimate the impact of extensions of transmission lines and energy storages on the electricity prices systematic case studies are undertaken. It is exemplarily shown that differences of electricity prices can be equalised with transmission capacity extensions whereas they remain with the use of storage devices.

Suggested Citation

  • Rudiger Barth & Heike Brand & Derk Jan Swider & Christoph Weber & Peter Meibom, 2006. "Regional electricity price differences due to intermittent wind power in Germany: impact of extended transmission and storage capacities," International Journal of Global Energy Issues, Inderscience Enterprises Ltd, vol. 25(3/4), pages 276-297.
    • Handle: RePEc:ids:ijgeni:v:25:y:2006:i:3/4:p:276-297
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    Citations

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    Cited by:

    1. Barth, Rüdiger & Weber, Christoph & Swider, Derk J., 2008. "Distribution of costs induced by the integration of RES-E power," Energy Policy, Elsevier, vol. 36(8), pages 3097-3105, August.
    2. Bernhard Hasche & Rüdiger Barth & Derk Jan Swider, 2007. "Effects of Improved Wind Forecasts on Operational Costs in the German Electricity System," Energy and Environmental Modeling 2007 24000017, EcoMod.
    3. Michiorri, Andrea & Nguyen, Huu-Minh & Alessandrini, Stefano & Bremnes, John Bjørnar & Dierer, Silke & Ferrero, Enrico & Nygaard, Bjørn-Egil & Pinson, Pierre & Thomaidis, Nikolaos & Uski, Sanna, 2015. "Forecasting for dynamic line rating," Renewable and Sustainable Energy Reviews, Elsevier, vol. 52(C), pages 1713-1730.
    4. Weber, Christoph, 2010. "Adequate intraday market design to enable the integration of wind energy into the European power systems," Energy Policy, Elsevier, vol. 38(7), pages 3155-3163, July.

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