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Space and Time: Wind in an Investment Planning Model

Author

Listed:
  • Karsten Neuhoff

    (Faculty of Economics, University of Cambridge)

  • Andreas Ehrenmann

    (Center for operations research and econometrics, Catholic University of Louvain,)

  • Lucy Butler

    (Faculty of Economics, University of Cambridge)

  • Jim Cust

    (Faculty of Economics, University of Cambridge)

  • Harriet Hoexter

    (ICF Consulting, London Office)

Abstract

Investment planning models inform investment decisions and government policies. Current models do not capture the intermittent nature of renewable energy sources, restricting the applicability of the models for high penetrations of renewables. We provide a methodology to capture spatial variation in wind output in combination with transmission constraints. The representation of wind distributions using stochastic approaches or using extensive historic data sets exceeds computational constraints for real world application. Hence we restrict the amount of input data, and use bootstrapping to illustrate the robustness of the results. For the UK power system we model wind deployment and the value of transmission capacity.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Karsten Neuhoff & Andreas Ehrenmann & Lucy Butler & Jim Cust & Harriet Hoexter, 2006. "Space and Time: Wind in an Investment Planning Model," Working Papers EPRG 0603, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    • Handle: RePEc:enp:wpaper:eprg0603
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    References listed on IDEAS

    as
    1. Cardell, Judith B. & Hitt, Carrie Cullen & Hogan, William W., 1997. "Market power and strategic interaction in electricity networks," Resource and Energy Economics, Elsevier, vol. 19(1-2), pages 109-137, March.
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    More about this item

    Keywords

    Investment planning model; Wind distribution; Electricity transmission; Renewables;
    All these keywords.

    JEL classification:

    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • C53 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Forecasting and Prediction Models; Simulation Methods
    • O21 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Planning Models; Planning Policy

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