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Reliability in Multy-Regional Power Systems - Capacity Adequacy and the Role of Interconnectors

Author

Listed:
  • Hagspiel, Simeon

    (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI))

  • Knaut, Andreas

    (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI))

  • Peter, Jakob

    (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI))

Abstract

Based upon probabilistic reliability metrics, we develop an optimization model to determine the efficient amount and location of firm generation capacity to achieve reliability targets in multiregional electricity systems. A particular focus lies on the representation and contribution of transmission capacities as well as variable renewable resources. Calibrating our model with a comprehensive dataset for Europe, we find that there are substantial benefits from regional cooperation. The amount of firm generation capacity to meet a perfectly reliable system could be reduced by 32.4GW (i.e., 6.1 %) compared to an isolated regional approach, which translates to savings of 12.9 Bn Euro when being valued with typical investment costs of an open-cycle gas turbine. Interconnectors contribute in both directions, with capacity values up to their technical maximum of close to 200 %, while wind power contributions are in the range of 3.8 - 29.5 %. Furthermore, we find that specific reliability targets heavily impact the efficient amount and distribution of reliable capacity as well as the contribution of individual technologies, and should therefore be chosen with care.

Suggested Citation

  • Hagspiel, Simeon & Knaut, Andreas & Peter, Jakob, 2017. "Reliability in Multy-Regional Power Systems - Capacity Adequacy and the Role of Interconnectors," EWI Working Papers 2017-7, Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI), revised 29 Jun 2018.
    • Handle: RePEc:ris:ewikln:2017_007
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    References listed on IDEAS

    as
    1. Hagspiel, Simeon, 2016. "Supply Chain Reliability and the Role of Individual Suppliers," EWI Working Papers 2016-5, Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI).
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    5. Michael L. Telson, 1975. "The Economies of Alternative Levels of Reliability for Electric Power Generation Systems," Bell Journal of Economics, The RAND Corporation, vol. 6(2), pages 679-694, Autumn.
    6. Peter Cramton & Axel Ockenfels & Steven Stoft, 2013. "Capacity Market Fundamentals," Economics of Energy & Environmental Policy, International Association for Energy Economics, vol. 0(Number 2).
    7. Cepeda, Mauricio & Saguan, Marcelo & Finon, Dominique & Pignon, Virginie, 2009. "Generation adequacy and transmission interconnection in regional electricity markets," Energy Policy, Elsevier, vol. 37(12), pages 5612-5622, December.
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    Cited by:

    1. Golub, Alexander & Govorukha, Kristina & Mayer, Philip & Rübbelke, Dirk, 2020. "How does Climate Change Affect the Transition of Power Systems: the Case of Germany," FACTS: Firms And Cities Towards Sustainability 305822, Fondazione Eni Enrico Mattei (FEEM) > FACTS: Firms And Cities Towards Sustainability.
    2. Peter, Jakob & Wagner, Johannes, 2018. "Optimal Allocation of Variable Renewable Energy Considering Contributions to Security of Supply," EWI Working Papers 2018-2, Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI).
    3. Henckes, Philipp & Knaut, Andreas & Obermüller, Frank & Frank, Christopher, 2018. "The benefit of long-term high resolution wind data for electricity system analysis," Energy, Elsevier, vol. 143(C), pages 934-942.
    4. Zhou, Ella & Cole, Wesley & Frew, Bethany, 2018. "Valuing variable renewable energy for peak demand requirements," Energy, Elsevier, vol. 165(PA), pages 499-511.

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    More about this item

    Keywords

    Reliability of supply; Capacity Adequacy; Multi-Regional Power System; Interconnector; Variable Renewable Energy;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • D47 - Microeconomics - - Market Structure, Pricing, and Design - - - Market Design
    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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