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

Klaus Skytte; Poul Erik Grohnheit

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

Research output: Chapter in Book/Report/Conference proceeding › Book chapter › Research › peer-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 language	English
Title of host publication	Electricity Markets with Increasing Levels of Renewable Generation: Structure, Operation, Agent-based Simulation, and Emerging Designs
Editors	Fernando Lopes, Helder Coelho
Publisher	Springer
Publication date	2018
Pages	79-93
ISBN (Print)	978-3-319-74261-8
ISBN (Electronic)	978-3-319-74263-2
Publication status	Published - 2018

Series	Studies in Systems, Decision and Control

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

OpenUrl availability

Full text

Flex4RES: Flexible Nordic Energy Systems
Skytte, K. (Project Manager), Kitzing, L. (Project Participant), Karlsson, K. B. (Project Participant), Pizarro Alonso, A. R. (Project Participant), Balyk, O. (Project Participant), Bolwig, S. (Project Participant), Pade, L.-L. (Project Participant), Soysal, E. R. (Project Participant), Katz, J. (Project Participant), Olsen, O. J. (Project Participant), Bergaentzlé, C. M. (Project Participant), Sneum, D. M. (Project Participant), Vasileiou, T. (PhD Student), Ravn, H. V. (Project Participant), Boscán Flores, L. R. (Project Participant), Koivisto, M. J. (Project Participant), Sørensen, P. E. S. (Project Participant) & Jensen, I. G. (Project Participant)
01/10/2015 → 30/09/2019
Project: Research

Cite this

@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",

series = "Studies in Systems, Decision and Control",

publisher = "Springer",

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",

}

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 proceeding › Book chapter › Research › peer-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

T3 - Studies in Systems, Decision and Control

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 -

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

Abstract

UN SDGs

OpenUrl availability

Fingerprint

Projects

Flex4RES: Flexible Nordic Energy Systems

Cite this