Renewable electric energy integration: Quantifying the value of design of markets for international transmission capacity

Karsten Neuhoff, Julian Barquin, Janusz W. Bialek, Rodney Boyd, Chris J. Dent, Francisco Echavarren, Thilo Grau, Christian von Hirschhausen, Benjamin F. Hobbs, Friedrich Kunz, Christian Nabe, Georgios Papaefthymiou, Christoph Weber, Hannes Weigt

Research output: Contribution to journalArticlepeer-review

81 Citations (Scopus)

Abstract

Integrating large quantities of variable renewable electricity generation remains a political and operational challenge. One of the main obstacles in Europe to installing at least 200 GWs of power from variable renewable sources is how to deal with the insufficient network capacity and the congestion that will result from new flow patterns. We model the current methodology for controlling congestion at international borders and compare its results, under varying penetrations of wind power, with models that simulate an integrated European network using nodal/localised marginal pricing. The nodal pricing simulations illustrate that congestion and price patterns vary considerably between wind scenarios and within countries, and that a nodal price regime could make better use of existing network capacity, introducing substantial operational cost savings and reducing marginal power prices in the majority of European countries.

Original languageEnglish
Pages (from-to)760-772
Number of pages13
JournalEnergy Economics
Volume40
DOIs
Publication statusPublished - Nov 2013
Externally publishedYes

Keywords

  • Congestion management
  • Power market design
  • Renewable power integration
  • Transmission economics

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