Rintamäki, T;
Siddiqui, AS;
Salo, A;
(2016)
How Much Is Enough? Optimal Support Payments in a Renewable-Rich Power System.
Energy
, 117
(Part 1)
pp. 300-315.
10.1016/j.energy.2016.10.058.
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Abstract
The large-scale deployment of intermittent renewable energy sources may cause substantial power imbalance. Together with the transmission grid congestion caused by the remoteness of these sources from load centers, this creates a need for fast-adjusting conventional capacity such as gas-fired plants. However, these plants have become unprofitable because of lower power prices due to the zero marginal costs of renewables. Consequently, policymakers are proposing new measures for mitigating balancing costs and securing supply. In this paper, we take the perspective of the regulator to assess the effectiveness of support payments to flexible generators. Using data on the German power system, we implement a bi-level programming model, which shows that such payments for gas-fired plants in southern Germany reduce balancing costs and can be used as part of policy to integrate renewable energy.
| Type: | Article |
|---|---|
| Title: | How Much Is Enough? Optimal Support Payments in a Renewable-Rich Power System |
| Open access status: | An open access version is available from UCL Discovery |
| DOI: | 10.1016/j.energy.2016.10.058 |
| Publisher version: | http://dx.doi.org/10.1016/j.energy.2016.10.058 |
| Language: | English |
| Additional information: | © 2017. This manuscript version is published under a Creative Commons Attribution Non-commercial Non-derivative 4.0 International licence (CC BY-NC-ND 4.0). This licence allows you to share, copy, distribute and transmit the work for personal and non-commercial use providing author and publisher attribution is clearly stated. Further details about CC BY licences are available at http://creativecommons.org/licenses/by/4.0. Access may be initially restricted by the publisher. |
| Keywords: | Renewable energy, Support payments, Day-ahead market, Balancing market, Congestion management, Mathematical programming with equilibrium constraints |
| UCL classification: | UCL UCL > Provost and Vice Provost Offices UCL > Provost and Vice Provost Offices > UCL BEAMS UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of Maths and Physical Sciences UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of Maths and Physical Sciences > Dept of Statistical Science |
| URI: | https://discovery.ucl.ac.uk/id/eprint/1522120 |
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