Power system integration of renewables: an economic approach

A nivell mundial les energies renovables han crescut de forma considerable al llarg d'aquestes dues últimes dècades, havent substituït parcialment als combustibles fòssils en àmbits tals com la generació elèctrica. Una aposta tan àmplia per aquest tipus d'energies només s'explica des del punt de vista de les importants i creixents avantatges associats a aquest tipus de tecnologies en tres àmbits fonamentals: el medi ambient, la seguretat de subministrament energètic i el desenvolupament econòmic. No únicament contribueixen a la reducció d'emissions de gasos d'efecte hivernacle donat el seu caràcter renovable sinó que addicionalment milloren la seguretat de subministrament, prenent en consideració que es tracta de fonts energètiques autòctones. Així mateix, les energies renovables suposen un important motor de desenvolupament econòmic i social, fomentant la innovació i la generació de llocs de treball d'elevat valor afegit. No obstant això, aquesta ràpida penetració de les energies renovables planteja desafiaments al sistema elèctric en particular que ha d'adaptar-se a una creixent generació descentralitzada i de caràcter variable. Des de la perspectiva dels respectius sistemes elèctrics i la seva operació, el problema a solucionar és com integrar en el sistema un contingent considerable de generació d'origen renovable, la disponibilitat del qual és aleatòria, de localització lliure i que, davant situacions d'inestabilitat, es desconnecta del propi sistema elèctric, obligant a la resta de generació a incrementar la seva quota de participació en temps real amb la finalitat de garantir el permanent equilibri entre oferta i demanda que tot sistema elèctric exigeix per al seu correcte funcionament. La present Tesi aborda en profunditat del disseny actual del mercat elèctric i de l'impacte econòmic de les energies renovables en el preu final de l'electricitat que paguen els consumidors, prestant una especial atenció als mercats d'ajust, imprescindibles per al desenvolupament i implementació de les energies renovables.A nivel mundial las energías renovables han crecido de forma considerable a lo largo de estas dos últimas décadas, habiendo sustituido parcialmente a los combustibles fósiles en ámbitos tales como la generación eléctrica. Una apuesta tan amplia por este tipo de energías sólo se explica desde el punto de vista de las importantes y crecientes ventajas asociadas a este tipo de tecnologías en tres ámbitos fundamentales: el medio ambiente, la seguridad de suministro energético y el desarrollo económico. No únicamente contribuyen a la reducción de emisiones de gases de efecto invernadero dado su carácter renovable sino que adicionalmente mejoran la seguridad de suministro, tomando en consideración que se trata de fuentes energéticas autóctonas. Asimismo, las energías renovables suponen un importante motor de desarrollo económico y social, fomentando la innovación y la generación de puestos de trabajo de elevado valor añadido. No obstante, esta rápida penetración de las energías renovables plantea desafíos al sistema eléctrico en particular que debe adaptarse a una creciente generación descentralizada y de carácter variable. Desde la perspectiva de los respectivos sistemas eléctricos y su operación, el problema a solucionar es cómo integrar en el sistema un contingente considerable de generación de origen renovable cuya disponibilidad es aleatoria, de localización libre y que, ante situaciones de inestabilidad, se desconecta del propio sistema eléctrico, obligando al resto de generación a incrementar su cuota de participación en tiempo real con el fin de garantizar el permanente equilibrio entre oferta y demanda que todo sistema eléctrico exige para su correcto funcionamiento. La presente Tesis aborda en profundidad del diseño actual del mercado eléctrico y del impacto económico de las energías renovables en el precio final de la electricidad que pagan los consumidores, prestando una especial atención a los mercados de ajuste, imprescindibles para el desarrollo e implementación de las energías renovables.At a global scale, the use of renewable energy has grown considerably over the last two decades, having partially replaced fossil fuels in many areas such as electricity generation. Such a broad commitment to this kind of energy can only be explained by the significant and growing benefits associated with this type of technology in three key areas: environment, security of energy supply and economic development. These new energy sources not only contribute to reducing emissions of greenhouse gases - given its renewable nature - but also improve security of supply, as they use domestic energy sources. In addition, renewable energies are key to economic and social development, encouraging innovation and the creation of high added value jobs. Nevertheless, the rapid deployment of renewable energy already poses challenges for the electricity system in particular, which needs to adapt to increasingly decentralised and variable renewable generation. From the perspective of electrical systems and their operation, the problem to be solved is how to integrate generation from renewable sources into the system when availability is random, freely located and taken into account that when faced with unstable conditions disconnects itself from its own electrical system, forcing the rest of the generation to increase its share in real time to ensure the permanent balance between supply and demand called for by any electrical system for proper operation. This Thesis aims to take a close look at the current design of the electricity market and the economic impact of renewable energy on the final price of electricity paid by consumers, paying particular attention to adjustment markets, essential for the development and deployment of renewable energy

Eastern European Countries and the EMU: departure situation and transition strategies.

The large amount of literatuture wihin the EMU makes compleatly imposible in one paper to analyze the consequences of the creation of a "monetary zone " in Europe. However, the recent decision of the European Council to incorporate in two phases the most of Eastern European Countires, introduces an interessant issue in order to evaluate the effects in terms of stability, future, dimension and optimality of a EMU based on 21 states. The paper starts explaining the baseic advances of the EMU, introducing some general data of the countries that are suposed to enter in future. As a second part of the paper the basic points of the Optimum Currency Areas will be established, and finally the third part would be an analysis of the future structure of the EMU using the OCA theory and and empirical analysis.

Analysing the sensitivity of electricity system operational costs to deviations in supply and demand

Increasing renewable penetration has given rise to a series of challenges as regards the ability of electricity systems to balance supply and demand, particularly with high levels of intermittent renewable generation. This new scenario requires a detailed quantitative assessment of the way in which the electricity system might both deliver and accommodate higher levels of RES-E generation and of the associated economic costs for the consumer. The estimations reported in this paper for the Spanish electricity system stress the importance of demand imbalance when accounting for the cost of balancing services, in contrast with previous studies that have focused their attention more specifically on supply effects

Impacts of intermittent renewable generation on electricity system costs [WP-IEB]

A successful deployment of power generation coming from variable renewable sources (VRES-E), such as wind and solar photovoltaic, strongly depends on the economic cost of system integration. This paper, in seeking to look beyond the impact of RES-E generation on the evolution of the total economic costs associated with the operation of the electricity system, aims to estimate the sensitivity of balancing market requirements and costs to the variable and non-fully predictable nature of intermittent renewable generation. The estimations reported in this paper for the Spanish electricity system stress the importance of both attributes as well as power system flexibility when accounting for the cost of balancing services

Mercat elèctric i competitivitat

A escala europea, la crisi econòmica i financera actual ha posat en relleu la importància de l'economia real i d'una indústria forta. Tal com reconeix la mateixa Comissió Europea en les seves diferents comunicacions, la interacció de la indústria amb la resta de l'entramat econòmic europeu va molt més enllà del mateix procés productiu. Les activitats industrials s'integren en cadenes de valor cada vegada més riques i complexes, en les quals conflueixen grans empreses, amb presència global en els mercats, i petites i mitjanes empreses de tots els sectors i països

Impacts of intermittent renewable generation on electricity system costs

A successful deployment of power generation coming from variable renewable sources, such as wind and solar photovoltaic, strongly depends on the economic cost of system integration. This paper, in seeking to look beyond the impact of renewable generation on the evolution of the total economic costs associated with the operation of the electricity system, aims to estimate the sensitivity of balancing market requirements and costs to the variable and non-fully predictable nature of intermittent renewable generation. The estimations reported in this paper for the Spanish electricity system stress the importance of both attributes as well as power system flexibility when accounting for the cost of balancing services

Unexpected consequences of liberalisation: metering, losses, load profiles and cost settlement in Spain’s electricity system

European energy markets have undergone a major transformation as they have advanced towards market liberalisation and it is vital that the details of these developments be carefully examined. The success of liberalisation is based on smart regulation, which has been capable of providing solutions to unforeseen events in the process. Our paper seeks to contribute to existing understanding of the unexpected consequences of the liberalisation process in the power system by examining a natural experiment that occurred in Spain in 2009. In that year, the electricity supply by distribution system operators (DSOs) disappeared. This positive change in retail market competition, as we demonstrate in this paper, has had an unexpected effect in terms of the system’s balancing requirements. We undertake a rigorous assessment of the economic consequences of this policy change for the whole system, in terms of its impact on final electricity prices

Vote buying or (political) business (cycles) as usual?

We study the short-run effect of elections on monetary aggregates in a sample of 85 low and middle income democracies (1975-2009). We find an increase in the growth rate of M1 during election months of about one tenth of a standard deviation. A similar effect can neither be detected in established OECD democracies nor in other months. The effect is larger in democracies with many poor and uneducated voters, and in Sub-Saharan Africa, Latin America, and in East-Asia and the Pacific. We argue that the election month monetary expansion is related to systemic vote buying which requires significant amounts of cash to be disbursed right before elections. The finely timed increase in M1 is consistent with this; is inconsistent with a monetary cycle aimed at creating an election time boom; and it cannot be, fully, accounted for by alternative explanations