Title: WIND POWER BALANCING COSTS FOR DIFFERENT SIZE ACTORS IN THE NORDIC ELECTRICITY MARKET
1WIND POWER BALANCING COSTS FOR DIFFERENT SIZE
ACTORS IN THE NORDIC ELECTRICITY MARKET
- EWEA2011, 17th March, 2011Hannele Holttinen
Anders StenbergVTT Technical Research Centre of
Finland
2Contents
- Nordic electricity market
- Wind power predictions, case 2010
- Balancing costs from the market
- One and two price systems for balance settlement
- Conclusions
3Nordic 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
4Case 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
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6Electricity market operationPrediction of wind
farm production
7Prediction and realized production of a wind farm
8Prediction error
9Prediction errors and balancing price balancing
cost when error and cost are in same direction
10Balancing cost
11Forecast 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
12Two 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
13Forecast 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
14Increasing 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
15Regulation market prices have increased
16Conclusions 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
17Forecast errors icing has an impact, future work
18VTT creates business from technology