WIND POWER BALANCING COSTS FOR DIFFERENT SIZE ACTORS IN THE NORDIC ELECTRICITY MARKET - PowerPoint PPT Presentation

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WIND POWER BALANCING COSTS FOR DIFFERENT SIZE ACTORS IN THE NORDIC ELECTRICITY MARKET

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Title: WIND POWER BALANCING COSTS FOR DIFFERENT SIZE ACTORS IN THE NORDIC ELECTRICITY MARKET


1
WIND POWER BALANCING COSTS FOR DIFFERENT SIZE
ACTORS IN THE NORDIC ELECTRICITY MARKET
  • EWEA2011, 17th March, 2011Hannele Holttinen
    Anders StenbergVTT Technical Research Centre of
    Finland

2
Contents
  • Nordic electricity market
  • Wind power predictions, case 2010
  • Balancing costs from the market
  • One and two price systems for balance settlement
  • Conclusions

3
Nordic electricity market
  • Day-ahead spot market, bids at noon for 24 hours
    of next day
  • Intra-day market, opens at 1500 previous day,
    closes one hour before delivery
  • Regulating Power Market, min 10 MW bids to be
    activated in 10 minutes and kept until end of the
    operating hour, coordinated operation by the TSOs
    to balance the Nordic system frequency
  • Imbalance pricing according to Regulating Power
    Market price
  • Cost reflective, transparent
  • Penalises only the imbalances that have been
    contributing to the imbalance (up- or
    downregulation for each hour)
  • Two price system for generation imbalances, one
    price system plus a fixed fee for consumption
    imbalances

4
Case year 2010, wind power data
  • Time series from 24 sites, 104 MW, 70 turbines
  • Wind speed forecasts and power output
  • Time series model for power output prediction
  • wind speed and wind direction input from Foreca
    40 hours ahead, to site/hub height
  • One month calculated at a time, 3 months from old
    2009 data used for parametrisation (gt 3 months
    did not give more accuracy)
  • Some sites of lower turbine availability were
    excluded

630 km
5
(No Transcript)
6
Electricity market operationPrediction of wind
farm production
7
Prediction and realized production of a wind farm
8
Prediction error
9
Prediction errors and balancing price balancing
cost when error and cost are in same direction
10
Balancing cost
11
Forecast errors resulting to balancing costs
year 2010 results
  • Blue bars prediction errors up/down, as of
    the total production
  • Red bars prediction errors up/down that result
    in extra payments

12
Two systems for imbalance settlement
Producer_1 imbalance
Producer_7 imbalance
Producer_2 imbalance
Producer_8 imbalance
Producer_3 imbalance
Producer_9 imbalance
Net system imbalance
  • Imbalance cost paid for the imbalances that are
    to the same direction as the system net imbalance
    (blue bars) according to regulating power
    market price for that hour
  • Actors that have their imbalances to the opposite
    direction than system net imbalance (white bars)
  • Will pay/receive spot price for the imbalance
    (two price system)
  • Will pay/receive regulating power market price
    for the imbalance (one price system) ? extra
    revenues as if they had bid to balancing market

13
Forecast errors balancing costs 2010One-price
system vs. Two-price system
  • Low penetration level of wind power
  • Two price system will penalise single site
    producers
  • One price system will treat the producers more
    similarly

14
Increasing penetration level of wind power versus
imbalance costs
  • One price system at low penetration level not so
    much difference whether a small or large producer
  • Assumption, average imbalance price 6 /MWh, up
    and down

15
Regulation market prices have increased
16
Conclusions how to improve market integration
of wind
  • Balance settlement rules have a large impact for
    wind power
  • One price system gives clear benefits at low
    penetration levels, and for small producers with
    concentrated wind power
  • Both one- and two-price system reflect the
    increase in system costs in the imbalance costs
    that producers pay
  • transparency when costs directly from balancing
    market
  • One price system means less income for the system
    operators
  • They can allocate the costs in the tariff for all
    consumers
  • As wind power producers have more imbalances than
    other producers or loads, it is beneficial for
    wind power that costs are allocated to all
    consumers and not in the payments of imbalances
  • At higher penetration levels, largest errors from
    day-ahead forecasts should be corrected before
    the hour of delivery
  • updated information from the prediction,
    intra-day markets

17
Forecast errors icing has an impact, future work
18
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