Chalmers University of Technology
Impact Assessment of
Wind Power and Demand
Side Management on DayAhead Market Prices
Figure:
http://greenbuildingelements.com/
David Steen, Pavan Balram, Le Anh Tuan,
Lina Reichenberg and Lina Bertling Tjernberg
Chalmers University of Technology
Background
•
Wind power could affect the wholesale electricity prices
– Lower wholesale electricity prices
– Negative electricity price could occur
•
Customers have limited incentives to act on the day-ahead
market
– Too low price volatility
Figure source: Green Building Council of South Africa
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Research question
•
•
Could demand response have any positive effect for wind
power producers?
Could wind power increase the incentives for customers to
become active?
Figure source: Green Building Council of South Africa
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Outline
•
•
Model description
Results
– Effects of wind power on the spot market price
– Effects of demand response on wind power producers
– Effects of wind power producers on demand response
•
Conclusions
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Model description
Generator data
-Marginal cost
-Hydro energy
Net
transfer
capacity
data
Wind
power data
Market Model
Conventional
demand data
(Minimize total generation cost)
Heat
demand
data
- Generation schedule
-Heat demand schedule
-Market price
-Wind power revenue
-Heat demand cost
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Generation constrains
•
•
•
The electricity that can be produced from hydro power plant is
limited by the water inflow and installed capacity.
– In the model the electricity production was limited based on
the actual production in 2012
– The production was spatially distributed between the bidding
areas according to the installed capacity and in time based
on the electricity demand.
Nuclear power capacity factor was estimated to be 80% in
winter and 40% in summer due to maintenance.
– The output power variation was limited to 80-100%, i.e. 80%
of the nuclear is a must run unit.
Wind power is bidding 0 €/MWh.
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Demand Response
•
Only space heating considered flexible
– Included in the market model and schedule to minimize the
total system cost
DK
NO
FI
SE
Number of houses
With electric
Total
heating
1 527 391 91 643
2 449 210* 1 714 447*
1 200 246 540 715
1 939 710 481 000
Demand/household [kWh]
Avg. all
Avg. customers with
customers electric heating
4 415
23 800
16 343
18 600
11 900
23 400
11 800
17 300
*includes multi dwellings
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Penetration
level [%]
Wind power penetration level
100
80
60
40
20
0
K2
K1
S
SY
D
D
FI
5
O
N
4
O
N
3
O
N
2
O
N
1
O
N
4
SE
3
SE
2
SE
1
SE
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Effects on spot price
Only wind power
Rel. diff.
in AAP [%]
0
-10
-20
K2
K1
S
SY
D
D
FI
5
O
N
4
O
N
3
O
N
2
O
N
1
O
N
4
SE
3
SE
2
SE
1
SE
Rel. diff.
in AAP [%]
DR with/without wind power
15
10
no WP
with WP
5
0
-5
K2
K1
S
SY
D
D
FI
5
O
N
4
O
N
3
O
N
2
O
N
1
O
N
4
SE
3
SE
2
SE
1
SE
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Effects on revenue for wind
power and heating costs
Rel.diff
annual rev. [%]
Only wind power
20
10
0
K2
K1
S
SY
D
D
FI
5
O
N
4
O
N
3
O
N
2
O
N
1
O
N
4
SE
3
SE
2
SE
1
SE
Rel. diff. in
heat cost [%]
DR with/without wind power
10
no WP
with WP
0
-10
K2
K1
S
SY
D
D
FI
5
O
N
4
O
N
3
O
N
2
O
N
1
O
N
4
SE
3
SE
2
SE
1
SE
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Conclusions
•
Increased wind power would generally decrease the
electricity price and could cause a more volatile
electricity price.
– Demand response could reduce these price variation.
•
•
By applying demand response the revenue for wind
power producers are, on a system level increased
although the revenue decreases in several price
areas.
The incentives to become an active customer are
generally increased with increased wind power
production within the system.
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Conclusions
•
Increased wind power would generally decrease the
electricity price and could cause a more volatile
electricity price.
– Demand response could reduce these price variation.
•
•
By applying demand response the revenue for wind
power producers are, on a system level increased
although the revenue decreases in several price
areas.
The incentives to become an active customer are
generally increased with increased wind power
production within the system.
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