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Optimal Configuration and Diversification of Wind Turbines: A Hybrid Approach to Improve the Penetration of Wind Power

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Literature indicates a decline in the market value of wind power with increasing market penetration. Two promising measures to mitigate this market value drop are system-friendly turbines and geographical diversification. This study analyzes the combined potential of a hybrid approach used to simultaneously improve market values, reduce system costs and the overall subsidy needs in Germany. Therefore, promising diversification regions and site optimal turbine configurations are identified. The corresponding market values and levelized cost of electricity are forecasted for penetration rates of up to 65% (2030). The analysis shows that the market value drop in diversified regions using system-friendly turbines is less severe. Furthermore, the hybrid approach results in system cost and subsidy savings. Additional analyses show that the dominant share of the hybrid approach benefits can be attributed to the use of system-friendly turbines and that diversification does not seem to be a promising alternative for Germany.

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  • Klie, Leo & Madlener, Reinhard, 2020. "Optimal Configuration and Diversification of Wind Turbines: A Hybrid Approach to Improve the Penetration of Wind Power," FCN Working Papers 1/2020, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN).
    • Handle: RePEc:ris:fcnwpa:2020_001
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    Cited by:

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    2. Klie, Leo & Madlener, Reinhard, 2024. "Concentration versus diversification: A spatial deployment approach to improve the economics of wind power," Energy Policy, Elsevier, vol. 185(C).
    3. Wolff, Stefanie & Madlener, Reinhard, 2020. "Willing to Pay? Spatial Heterogeneity of e-Vehicle Charging Preferences in Germany," FCN Working Papers 9/2020, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN).
    4. Pöstges, Arne & Weber, Christoph, 2023. "Identifying key elements for adequate simplifications of investment choices – The case of wind energy expansion," Energy Economics, Elsevier, vol. 120(C).
    5. Fabianek, Paul & Glensk, Barbara & Madlener, Reinhard, 2021. "A Sequential Real Options Analysis for Renewable Power-to-Hydrogen Plants in Germany and California," FCN Working Papers 1/2021, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN).
    6. Liu, Xueying & Madlener, Reinhard, 2021. "Economic Benefits of Direct Current Technology for Private Households and Peer-to-Peer Trading in Germany," FCN Working Papers 7/2021, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN).
    7. Madlener, Reinhard & Sheykhha, Siamak & Briglauer, Wolfgang, 2022. "The electricity- and CO2-saving potentials offered by regulation of European video-streaming services," Energy Policy, Elsevier, vol. 161(C).
    8. Hosius, Emil & Seebaß, Johann V. & Wacker, Benjamin & Schlüter, Jan Chr., 2023. "The impact of offshore wind energy on Northern European wholesale electricity prices," Applied Energy, Elsevier, vol. 341(C).
    9. Sheykhha, Siamak & Borggrefe, Frieder & Madlener, Reinhard, 2022. "Policy implications of spatially differentiated renewable energy promotion: A multi-level scenario analysis of onshore wind auctioning in Germany," Energy Policy, Elsevier, vol. 169(C).
    10. Shyekhha, Siamak & Borggrefe, Frieder & Madlener, Reinhard, 2019. "A Counterfactual Analysis of Regional Renewable Energy Auctions Taking the Spatial Dimension into Account," FCN Working Papers 22/2019, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN).
    11. Arne Pöstges & Christoph Weber, "undated". "Identifying key elements for adequate simplifications of investment choices - The case of wind energy expansion," EWL Working Papers 2101, University of Duisburg-Essen, Chair for Management Science and Energy Economics.
    12. Hellwig, Robert & Atasoy, Ayse Tugba & Madlener, Reinhard, 2020. "The Impact of Social Preferences and Information on the Willingness to Pay for Fairtrade Products," FCN Working Papers 6/2020, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN).
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    More about this item

    Keywords

    Market value; Penetration of renewables; Cannibalization; System-friendly turbines; Geographic diversification;
    All these keywords.

    JEL classification:

    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies
    • 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
    • R32 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other Spatial Production and Pricing Analysis

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