Assessing financial and flexibility incentives for integrating wind energy in the grid via agent-based modeling

This article provides an agent-based model of a hypothetical standalone electricity network to identify how the feed-in tariffs and the installed capacity of wind power, calculated in percentage of total system demand, affect the electricity consumption from renewables. It includes the mechanism of electricity pricing on the Day Ahead Market (DAM) and the Imbalance Market (IM). The extra production volumes of Electricity from Renewable Energy Sources (RES-E) and the flexibility of electrical consumption of industries is provided as reserves on the IM. Five thousand simulations were run by using the agent-based model to gather data that were then fit in linear regression models. This helped to quantify the effect of feed-in tariffs and installed capacity of wind power on the consumption from renewable energy and market prices. The consumption from renewable sources, expressed as percentage of total system consumption, increased by 8.17% for every 10% increase in installed capacity of wind power. The sharpest increase in renewable energy consumption is observed when a feed-in tariff of 0.04 €/kWh is provided to the wind farm owners, resulting in an average increase of 9.1% and 5.1% in the consumption from renewable sources while the maximum installed capacity of wind power is 35% and 100%, respectively. The regression model for the annualized DAM prices showed an increase by 0.01 €cents/kWh in the DAM prices for every 10% increase in the installed wind power capacity. With every increase of 0.01 €/kWh in the value of feed-in tariffs, the mean DAM price is lowered as compared to the previous value of the feed-in tariff. DAM prices only decrease with increasing installed wind capacity when a feed-in tariff of 0.04 €/kWh is provided. This is observed because all wind power being traded on DAM at a very cheap price. Hence, no volume of electricity is being stored for availability on IM. The regression models for predicting IM prices show that, with every 10% increase in installed capacity of wind power, the annualized IM price decreases by 0.031 and 0.34 €cents/kWh, when installed capacity of wind power is between 0 and 25%, and between 25 and 100%, respectively. The models also showed that, until the maximum installed capacity of wind power is less than 25%, the IM prices increase when the value of feed-in tariff is 0.01 and 0.04 €/kWh, but decrease for a feed-in tariff of 0.02 and 0.03 €/kWh. When installed capacity of wind power is between 25 and 100%, increasing feed-in tariffs to the value of 0.03 €/kWh result in lowering the mean IM price. However, at 0.04 €/kWh, the mean IM price is higher, showing the effect of no storage reserves being available on IM and more expensive reserves being engaged on the IM. The study concludes that the effect of increasing installed capacity of wind power is more significant on increasing consumption of renewable energy and decreasing the DAM and IM prices than the effect of feed-in tariffs. However, the effect of increasing values of both factors on the profit of RES-E producers with storage facilities is not positive, pointing to the need for customized rules and incentives to encourage their market participation and investment in storage facilities

An assessment of European information technology tools to support industrial symbiosis

Industrial symbiosis (IS) has proven to bring collective benefits to multiple stakeholders by minimising underutilised resources, sharing knowledge and improving business and technical processes. In Europe alone, over (sic)130 million have been invested since 2006 in research projects that enable IS by developing a methodology, tool, software, platform or network that facilitates the uptake of IS by different economic actors. This paper discusses and assesses information technology (IT) developments for supporting IS in Europe, following the five-stage methodology of Grant et al. (2010). It provides guidance to the applicants and reviewers of publicly funded research projects by listing the developments and gaps in the newly developed IT tools for IS. Content analysis of publicly available information on 20 IS supporting IT tools reveals a strong focus on synergy identification but a lack of support for the implementation stage of IS. The paper indicates that a vast quantity of IT tools and knowledge is created during the IT tool development stage and newer IT tools now also include implicit information for identifying IS. It was found that successfully operational IT tools are either part of a national or local IS programme or owned by a private company. The paper ends with the recommendation that better mechanisms are needed to ensure that publicly funded IS-supporting IT tools successfully reach the market

An assessment of European information technology tools to support industrial symbiosis

Industrial symbiosis (IS) has proven to bring collective benefits to multiple stakeholders by minimising underutilised resources, sharing knowledge and improving business and technical processes. In Europe alone, over €130 million have been invested since 2006 in research projects that enable IS by developing a methodology, tool, software, platform or network that facilitates the uptake of IS by different economic actors. This paper discusses and assesses information technology (IT) developments for supporting IS in Europe, following the five-stage methodology of Grant et al. (2010). It provides guidance to the applicants and reviewers of publicly funded research projects by listing the developments and gaps in the newly developed IT tools for IS. Content analysis of publicly available information on 20 IS supporting IT tools reveals a strong focus on synergy identification but a lack of support for the implementation stage of IS. The paper indicates that a vast quantity of IT tools and knowledge is created during the IT tool development stage and newer IT tools now also include implicit information for identifying IS. It was found that successfully operational IT tools are either part of a national or local IS programme or owned by a private company. The paper ends with the recommendation that better mechanisms are needed to ensure that publicly funded IS-supporting IT tools successfully reach the market

Assessing financial and flexibility incentives for integrating wind energy in the grid via agent-based modeling

This article provides an agent-based model of a hypothetical standalone electricity network to identify how the feed-in tariffs and the installed capacity of wind power, calculated in percentage of total system demand, affect the electricity consumption from renewables. It includes the mechanism of electricity pricing on the Day Ahead Market (DAM) and the Imbalance Market (IM). The extra production volumes of Electricity from Renewable Energy Sources (RES-E) and the flexibility of electrical consumption of industries is provided as reserves on the IM. Five thousand simulations were run by using the agent-based model to gather data that were then fit in linear regression models. This helped to quantify the effect of feed-in tariffs and installed capacity of wind power on the consumption from renewable energy and market prices. The consumption from renewable sources, expressed as percentage of total system consumption, increased by 8.17% for every 10% increase in installed capacity of wind power. The sharpest increase in renewable energy consumption is observed when a feed-in tariff of 0.04 €/kWh is provided to the wind farm owners, resulting in an average increase of 9.1% and 5.1% in the consumption from renewable sources while the maximum installed capacity of wind power is 35% and 100%, respectively. The regression model for the annualized DAM prices showed an increase by 0.01 €cents/kWh in the DAM prices for every 10% increase in the installed wind power capacity. With every increase of 0.01 €/kWh in the value of feed-in tariffs, the mean DAM price is lowered as compared to the previous value of the feed-in tariff. DAM prices only decrease with increasing installed wind capacity when a feed-in tariff of 0.04 €/kWh is provided. This is observed because all wind power being traded on DAM at a very cheap price. Hence, no volume of electricity is being stored for availability on IM. The regression models for predicting IM prices show that, with every 10% increase in installed capacity of wind power, the annualized IM price decreases by 0.031 and 0.34 €cents/kWh, when installed capacity of wind power is between 0 and 25%, and between 25 and 100%, respectively. The models also showed that, until the maximum installed capacity of wind power is less than 25%, the IM prices increase when the value of feed-in tariff is 0.01 and 0.04 €/kWh, but decrease for a feed-in tariff of 0.02 and 0.03 €/kWh. When installed capacity of wind power is between 25 and 100%, increasing feed-in tariffs to the value of 0.03 €/kWh result in lowering the mean IM price. However, at 0.04 €/kWh, the mean IM price is higher, showing the effect of no storage reserves being available on IM and more expensive reserves being engaged on the IM. The study concludes that the effect of increasing installed capacity of wind power is more significant on increasing consumption of renewable energy and decreasing the DAM and IM prices than the effect of feed-in tariffs. However, the effect of increasing values of both factors on the profit of RES-E producers with storage facilities is not positive, pointing to the need for customized rules and incentives to encourage their market participation and investment in storage facilities

Trends of climate change in the lower Indus Basin region of Pakistan : future implications for agriculture

Purpose - Lower Indus Basin (LIB) region is the food basket of Pakistan, and climatic variation in response to global warming might severely affect the crop production and, thus, food security and ultimately to the economy of the country. Design/methodology/approach - The authors analyzed the previous climatic factors data series of LIB region to investigate the past and present climatic trends and to predict the future changes. Climatic changes were monitored by studying temperature, rainfall and relative humidity (RH) dynamics at two locations (Lahore and Multan) of the LIB region, Pakistan, by using data from 1953 to 2006. The data were divided into two equal halves (1953-1979 and 1980-2006) and statistically compared for the aforementioned weather parameters. Findings - The results suggested that mean minimum temperature (MMT) and overall mean temperature in winter were significantly increased, whereas few summer months had also experienced the reduction in both temperatures. However, few minor changes were also observed for the mean maximum temperature at both locations. The rainfall amount did not vary significantly at both locations, with the exception for the months of February and June at Lahore location, which experienced relatively higher rainfall in latter period (1980-2006). However, morning and evening RH was significantly increased at Multan throughout the year and for some selected months (February-March and May-July) at Lahore. However, the comparison of climatic data of both temporal halves suggested either dryer weather during winter months because of increase in MMT and/or increase in area under irrigated agriculture, resulting in more evaporation at both locations. Similarly, the data also indicated the early monsoon rainfall patterns in summer and late western depression rainfall spell during winter, which played key role to affect the crop yield because of irregular rain events. Research limitations/implications - The current manuscript would be very useful for the disaster management authorities and agriculture sector to predict the future irregular trends of climate change in Pakistan. Moreover, current findings can be important tool toward the management of climatic changes issues (i.e. floods and dryer spells) and to formulate the future strategies for the improved crop growth in arid and/or semi-arid developing nations such as Pakistan. Originality/value - The current manuscript, for the very first time, provided detailed insights into key climatic factors changes for past seven decades, into the severely climate change-affected areas of the world. Furthermore, agricultural sector is likely to be severely affected because of minor seasonal change in temperature and moisture, and have a strong food security impact, which can be reflected with current data set to cope with both ecological and economic impacts of climate change in Pakistan. The current findings would be useful to manage the climate change-related issues in Pakistan, including the social, environmental and economic