Renewable electricity generation and transmission network developments in light of public opposition: Insights from Ireland. ESRI Working Paper No. 653 March 2020

This paper analyses how people’s attitudes towards onshore wind power and overhead transmission lines affect the costoptimal development of electricity generation mixes, under a high renewable energy policy. For that purpose, we use a power systems generation and transmission expansion planning model, combined with information on public attitudes towards energy infrastructure on the island of Ireland. Overall, households have a positive attitude towards onshore wind power but their willingness to accept wind farms near their homes tends to be low. Opposition to overhead transmission lines is even greater. This can lead to a substantial increase in the costs of expanding the power system. In the Irish case, costs escalate by more than 4.3% when public opposition is factored into the constrained optimisation of power generation and grid expansion planning across the island. This is mainly driven by the compounded effects of higher capacity investments in more expensive technologies such as offshore wind and solar photovoltaic to compensate for lower levels of onshore wind generation and grid reinforcements. The results also reveal the effect of public opposition on the value of onshore wind, via shadow prices. The higher the level of public opposition, the higher the shadow value of onshore wind. And, this starkly differs across regions: regions with more wind resource or closest to major demand centres have the highest shadow prices. The shadow costs can guide policy makers when designing incentive mechanisms to garner public support for onshore wind installations

Market and Economic Modelling of the Intelligent Grid: End of Year Report 2009

The overall goal of Project 2 has been to provide a comprehensive understanding of the impacts of distributed energy (DG) on the Australian Electricity System. The research team at the UQ Energy Economics and Management Group (EEMG) has constructed a variety of sophisticated models to analyse the various impacts of significant increases in DG. These models stress that the spatial configuration of the grid really matters - this has tended to be neglected in economic discussions of the costs of DG relative to conventional, centralized power generation. The modelling also makes it clear that efficient storage systems will often be critical in solving transient stability problems on the grid as we move to the greater provision of renewable DG. We show that DG can help to defer of transmission investments in certain conditions. The existing grid structure was constructed with different priorities in mind and we show that its replacement can come at a prohibitive cost unless the capability of the local grid to accommodate DG is assessed very carefully.Distributed Generation. Energy Economics, Electricity Markets, Renewable Energy

Impact of Forecast Errors on Expansion Planning of Power Systems with a Renewables Target

This paper analyzes the impact of production forecast errors on the expansion planning of a power system and investigates the influence of market design to facilitate the integration of renewable generation. For this purpose, we propose a stochastic programming modeling framework to determine the expansion plan that minimizes system-wide investment and operating costs, while ensuring a given share of renewable generation in the electricity supply. Unlike existing ones, this framework includes both a day-ahead and a balancing market so as to capture the impact of both production forecasts and the associated prediction errors. Within this framework, we consider two paradigmatic market designs that essentially differ in whether the day-ahead generation schedule and the subsequent balancing re-dispatch are co-optimized or not. The main features and results of the model set-ups are discussed using an illustrative four-node example and a more realistic 24-node case study

Climate policy costs of spatially unbalanced growth in electricity demand: the case of datacentres. ESRI Working Paper No. 657 March 2020

We investigate the power system implications of the anticipated expansion in electricity demand by datacentres. We perform a joint optimisation of Generation and Transmission Expansion Planning considering uncertainty in future datacentre growth under various climate policies. Datacentre expansion imposes significant extra costs on the power system, even under the cheapest policy option. A renewable energy target is more costly than a technology-neutral carbon reduction policy, and the divergence in costs increases non-linearly in electricity demand. Moreover, a carbon reduction policy is more robust to uncertainties in projected demand than a renewable policy. High renewable targets crowd out other low-carbon options such as Carbon Capture and Sequestration. The results suggest that energy policy should be reviewed to focus on technology-neutral carbon reduction policies