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

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

Energy market integration and electricity trade

This paper explores energy trade in the electricity market by undertaking a comprehensive empirical analysis of the effect of Europe's progressive Energy Market Integration (EMI). Its aim is to quantify the effect of EMI on electricity trade in Europe in order to derive corresponding evidenced- based policy implications. The empirical strategy employs standard goods trade gravity models, adapted to energy trade in the electricity market and estimated using standard gravity techniques. We use energy trade flows between European countries to quantify the effect of the successive EMI enlargements on energy flows. The paper highlights relevant fact-based policy implications for integrating electricity markets. Our results suggest that EMI creates electricity trade among members, but also diverts trade between non-members. Two main mechanisms appear to account for the EMI effect: namely, market enlargement and the integration of electricity markets

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

Smart meters and consumer behaviour: insights from the empirical literature

This paper summarises the insights to be gained from a systematic literature review of empirical research devoted to behavioural considerations associated with the use of smart meters and energy information feedback. Above and beyond the mass rollout of smart meters, there are various behavioural considerations that can affect the way in which consumers react to information enabling the adaptation of their consumption behaviour in response to dynamic pricing. Indeed, many empirical studies have been conducted in various countries aimed at determining how consumers respond to feedback on their consumption and prices (...