Market Prices in a Power Market with more than 50% Wind Power

Klaus Skytte, Poul Erik Grohnheit

    Research output: Chapter in Book/Report/Conference proceedingBook chapterResearchpeer-review

    Abstract

    Denmark has the highest proportion of wind power in the world. Wind power provided a world record of 39.1% of the total annual Danish electricity consumption in 2014 with as much as 51.7% in Western Denmark. Many would argue that the present power markets are not designed for such high shares of wind power production and that it would be hard to get good and stable prices. However, analyses in this chapter show that the Nordic power market works, extreme events have been few, and the current infrastructure and market organization has been able to handle the amount of wind power installed so far. It is found that geographical bidding areas for the wholesale electricity market reflect external transmission constraints caused by wind power. The analyses in this chapter use hourly data from West Denmark—which has the highest share of wind energy in Denmark and which is a separate price area at the Nordic power exchange. Data have been collected from the last ten years and periods with extreme wind conditions are used as case studies to illustrate the robustness of our findings.
    Original languageEnglish
    Title of host publicationElectricity Markets with Increasing Levels of Renewable Generation: Structure, Operation, Agent-based Simulation, and Emerging Designs
    EditorsFernando Lopes, Helder Coelho
    PublisherSpringer
    Publication date2018
    Pages79-93
    ISBN (Print)978-3-319-74261-8
    ISBN (Electronic)978-3-319-74263-2
    Publication statusPublished - 2018
    SeriesStudies in Systems, Decision and Control

    Cite this

    Skytte, K., & Grohnheit, P. E. (2018). Market Prices in a Power Market with more than 50% Wind Power. In F. Lopes, & H. Coelho (Eds.), Electricity Markets with Increasing Levels of Renewable Generation: Structure, Operation, Agent-based Simulation, and Emerging Designs (pp. 79-93). Springer. Studies in Systems, Decision and Control
    Skytte, Klaus ; Grohnheit, Poul Erik. / Market Prices in a Power Market with more than 50% Wind Power. Electricity Markets with Increasing Levels of Renewable Generation: Structure, Operation, Agent-based Simulation, and Emerging Designs . editor / Fernando Lopes ; Helder Coelho. Springer, 2018. pp. 79-93 (Studies in Systems, Decision and Control).
    @inbook{4026fc3237b14fe6a36906c47651779e,
    title = "Market Prices in a Power Market with more than 50{\%} Wind Power",
    abstract = "Denmark has the highest proportion of wind power in the world. Wind power provided a world record of 39.1{\%} of the total annual Danish electricity consumption in 2014 with as much as 51.7{\%} in Western Denmark. Many would argue that the present power markets are not designed for such high shares of wind power production and that it would be hard to get good and stable prices. However, analyses in this chapter show that the Nordic power market works, extreme events have been few, and the current infrastructure and market organization has been able to handle the amount of wind power installed so far. It is found that geographical bidding areas for the wholesale electricity market reflect external transmission constraints caused by wind power. The analyses in this chapter use hourly data from West Denmark—which has the highest share of wind energy in Denmark and which is a separate price area at the Nordic power exchange. Data have been collected from the last ten years and periods with extreme wind conditions are used as case studies to illustrate the robustness of our findings.",
    author = "Klaus Skytte and Grohnheit, {Poul Erik}",
    year = "2018",
    language = "English",
    isbn = "978-3-319-74261-8",
    pages = "79--93",
    editor = "Lopes, {Fernando } and Helder Coelho",
    booktitle = "Electricity Markets with Increasing Levels of Renewable Generation: Structure, Operation, Agent-based Simulation, and Emerging Designs",
    publisher = "Springer",

    }

    Skytte, K & Grohnheit, PE 2018, Market Prices in a Power Market with more than 50% Wind Power. in F Lopes & H Coelho (eds), Electricity Markets with Increasing Levels of Renewable Generation: Structure, Operation, Agent-based Simulation, and Emerging Designs . Springer, Studies in Systems, Decision and Control, pp. 79-93.

    Market Prices in a Power Market with more than 50% Wind Power. / Skytte, Klaus; Grohnheit, Poul Erik.

    Electricity Markets with Increasing Levels of Renewable Generation: Structure, Operation, Agent-based Simulation, and Emerging Designs . ed. / Fernando Lopes; Helder Coelho. Springer, 2018. p. 79-93 (Studies in Systems, Decision and Control).

    Research output: Chapter in Book/Report/Conference proceedingBook chapterResearchpeer-review

    TY - CHAP

    T1 - Market Prices in a Power Market with more than 50% Wind Power

    AU - Skytte, Klaus

    AU - Grohnheit, Poul Erik

    PY - 2018

    Y1 - 2018

    N2 - Denmark has the highest proportion of wind power in the world. Wind power provided a world record of 39.1% of the total annual Danish electricity consumption in 2014 with as much as 51.7% in Western Denmark. Many would argue that the present power markets are not designed for such high shares of wind power production and that it would be hard to get good and stable prices. However, analyses in this chapter show that the Nordic power market works, extreme events have been few, and the current infrastructure and market organization has been able to handle the amount of wind power installed so far. It is found that geographical bidding areas for the wholesale electricity market reflect external transmission constraints caused by wind power. The analyses in this chapter use hourly data from West Denmark—which has the highest share of wind energy in Denmark and which is a separate price area at the Nordic power exchange. Data have been collected from the last ten years and periods with extreme wind conditions are used as case studies to illustrate the robustness of our findings.

    AB - Denmark has the highest proportion of wind power in the world. Wind power provided a world record of 39.1% of the total annual Danish electricity consumption in 2014 with as much as 51.7% in Western Denmark. Many would argue that the present power markets are not designed for such high shares of wind power production and that it would be hard to get good and stable prices. However, analyses in this chapter show that the Nordic power market works, extreme events have been few, and the current infrastructure and market organization has been able to handle the amount of wind power installed so far. It is found that geographical bidding areas for the wholesale electricity market reflect external transmission constraints caused by wind power. The analyses in this chapter use hourly data from West Denmark—which has the highest share of wind energy in Denmark and which is a separate price area at the Nordic power exchange. Data have been collected from the last ten years and periods with extreme wind conditions are used as case studies to illustrate the robustness of our findings.

    M3 - Book chapter

    SN - 978-3-319-74261-8

    SP - 79

    EP - 93

    BT - Electricity Markets with Increasing Levels of Renewable Generation: Structure, Operation, Agent-based Simulation, and Emerging Designs

    A2 - Lopes, Fernando

    A2 - Coelho, Helder

    PB - Springer

    ER -

    Skytte K, Grohnheit PE. Market Prices in a Power Market with more than 50% Wind Power. In Lopes F, Coelho H, editors, Electricity Markets with Increasing Levels of Renewable Generation: Structure, Operation, Agent-based Simulation, and Emerging Designs . Springer. 2018. p. 79-93. (Studies in Systems, Decision and Control).