NSON-DK Day-Ahead market operation analysis in the North Sea region towards 2050

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This report analyses the impact of: a) the penetration of VRE towards 2050, and b) the offshore grid architecture, on the DA market operation in the North Sea region. Additionally, the impact of the optimization method used is also studied. The results from the DA simulations towards 2050 showed a considerable penetration of VRE in the energy system, reducing drastically the use of fossil fuels. This penetration reduces considerably the emissions of the studied energy system in the countries in focus at the expense of increasing its costs due to especially the high increase in CO2 cost. The penetration of VRE and its associated grid development lead to great change in the operation of the system and electricity price distribution. More trade, and more efficient hydro dispatch are some of the key features of the energy system in 2050. The results show that the technology type that is likely to profit most from this VRE integration is hydro reservoirs, whereas the one with more challenges is likely to be condensing power plants. The latter will most likely not be able to be profitable participating only in the energy markets towards 2050. On the other hand, the impact of the offshore grid architecture in the DA market operation is found rather limited. Energy-wise the offshore grid scenario results in slightly higher penetration of VRE, higher eduction of emissions, more efficient energy trade, and less operational costs towards 2050 to cover the same demand. Nevertheless, the offshore grid architecture seems to be the most cost-efficient way to operate the future energy system of the North Sea region, especially to integrate offshore wind and hence its development should be encouraged. For the offshore grid scenario to become real, there is great need for international cooperation though. The optimization method can have a considerable influence on the curtailment of the system. When LP method is used, less curtailment takes place. The use of the MIP algorithm lead to the most realistic hourly operation of the power plants, at the expense of increasing considerably the computational time. Introducing RMIP improved considerably the results with respect to the LP approach, at the cost of increasing a bit the computational time. Therefore, it seems like, unless the analysis of detailed hourly operation of individual units is of great importance, the RMIP approach is the most convenient.
Original languageEnglish
PublisherTechnical University of Denmark
Number of pages48
ISBN (Print)978-87-93549-61-6
Publication statusPublished - 2019


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