Assessing the future economic performance of wind generation in conjunction with compressed air energy storage in the new proposed Irish electricity market
DOI:
https://doi.org/10.17811/ebl.4.3.2015.87-97Abstract
The Integrated Single Electricity Market (I-SEM) is the proposed wholesale electricity market for Ireland and it is intended to replace the current market by the end of 2017. Under the I-SEM, wind generation will be exposed to forecast risk and the requirement to be balance responsible. The use of Compressed Air Energy Storage (CAES) could represent a better system configuration which would reduce the reliance on expensive generation for system balancing and reduce the financial risk to wind generation. Thus, the aim of this paper is to estimate the future economic performance of wind generation with and without CAES, in the I-SEM. Specifically, the day-ahead and balancing mechanism system marginal prices are estimated under the I-SEM for various scenarios.
References
Commission for Energy Regulation (CER), 2011. Validation of Market Simulation Software in SEM to end 2012, Dublin. Available at: http://www.allislandproject.org/en/sem_publications.aspx?year=2011§ion=2.
Cleary, B., Duffy, A., O'Connor, A., Conlon, M., Fthenakis, V., 2015. Assessing the Economic Benefits of Compressed Air Energy Storage for Mitigating Wind Curtailment. IEEE Transactions on Sustainable Energy, PP(99), pp.1–8.
Cleary, B., Duffy, A., Bach, B.,Vitina, A.,O'Connor, A., Conlon, M.,2015. Estimating the economic and environmental impacts of large scale wind energy exports from Ireland to Great Britain. Working Paper.
Connolly, D.,Lund, H., Mathiesen, B.V., Leahy, M., 2010. Modelling the existing Irish energy-system to identify future energy costs and the maximum wind penetration feasible. Energy, 35(5), pp.2164–2173.
Deane, J.P., Dalton, G., Ó Gallachóir, B.P., 2012. Modelling the economic impacts of 500MW of wave power in Ireland. Energy Policy, 45, pp.614–627.
Deane, J.P., Drayton, G., Ó Gallachóir, B.P., 2014. The impact of sub-hourly modelling in power systems with significant levels of renewable generation. Applied Energy, 113, pp.152–158.
Denny, E., 2009. The economics of tidal energy. Energy Policy, 37(5), pp.1914–1924.
Department of Communications, Energy and Natural Resources (DCENR), 2009. National Renewable Energy Action Plan, Available at: http://www.dcenr.gov.ie/NR/rdonlyres/C71495BB-DB3C-4FE9-A725-0C094FE19BCA/0/2010NREAP.pdf.
Doherty, R., Outhred, H., O'Mally, M., 2006. Establishing the Role That Wind Generation May Have in Future Generation Portfolios. IEEE Transactions on Power Systems,21(3), pp.1415–1422.
Duffy, A., Cleary, B., 2015. Task 26 Cost of Wind Energy - Chapter 3. Wind Energy Development in Ireland, Dublin.
Eirgrid, 2009. Executive Summary: Interconnection economic feasibility report, Dublin. Available at: http://www.eirgrid.com/media/47958_EG_Summary09.pdf.
Eirgrid, 2010. Grid 25 A Strategy for the Development of Irelands Electricity Grid for a Sustainable and Competitive Future, Available at: http://www.eirgrid.com/media/Grid 25.pdf.
Eirgrid, 2014. Wind Generation. Available at: http://www.eirgrid.com/operations/systemperformancedata/windgeneration/ [Accessed January 20, 2014].
Eirgrid and SONI, 2012a. All-Island Generation Capacity Statement 2012-2021, Dublin/Belfast. Available at: http://www.eirgrid.com/media/All-Island GCS 2012-2021.pdf.
Eirgrid and SONI, 2015. Generation Capacity Statement 2015-2024, Dublin/Belfast. Available at: http://www.eirgrid.com/media/Eirgrid_Generation_Capacity_Statement_2015.-2024.pdf.
Eirgrid and SONI, 2012b. System Services Consultation Finance Arrangements, Dublin/Belfast. Available at: http://www.eirgrid.com/media/System_Services_Consultation_-_Finance_Arrangements.pdf.
European Commission, 2009. Directive 2009/72/EC concerning common rules for the internal market in electricity and repealing Directive 2003/54/EC, Brussels. Available at: http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32009L0072&from=EN.
Evans, A., Strezov, V., Evans, T.J., 2012. Assessment of utility energy storage options for increased renewable energy penetration. Renewable and Sustainable Energy Reviews, 16(6), pp.4141–4147.
Evans, D.J. Reay, D.M., Riley, N.J., Mitchell, W.I., Busby, J., 2006. Appraisal of underground energy storage potential in Northern Ireland, Keyworth.
Energy Exemplar, 2013. PLEXOS® Integrated Energy Model. Available at: http://www.energyexemplar.com/ [Accessed November 13, 2014].
Foley, A., Díaz Lobera, I., 2013. Impacts of compressed air energy storage plant on an electricity market with a large renewable energy portfolio. Energy, 57, pp.85–94.
The R Foundation, The R Project for Statistical Computing. Available at: http://www.r-project.org/.
Gaelectric Energy Storage (GES), 2011. Larne. Available at: http://www.gaelectric.ie/index.php/energy-storage/larne/ [Accessed May 3, 2013].
Grant, P., Phillips, E., 2011. The impact of wind on pricing within the Single Electricity Market, London. Available at: http://www.iwea.com/contentFiles/Documents for Download/Publications/News
Items/Impact_of_Wind_on_Electricity_Prices.pdf?uid=1298912434703.
Loisel, R., Mercier, A., Gatzen, C., Elms, N., Petric, H., 2010. Valuation framework for large scale electricity storage in a case with wind curtailment. Energy Policy, 38(11), pp.7323–7337.
Mc Garrigle, E.V., Deane, J.P., Leahy, P.G., 2013. How much wind energy will be curtailed on the 2020 Irish power system? Renewable Energy, 55, pp.544–553.
Ming, N., Zhou, Z., Osbo, D., 2012. Economic and operation benefits of energy storage - A case study at MISO. IEEE, pp.1–7.
Mott MacDonald, 2010. UK Electricity Generation Costs Update, Brighton.
Central Statistics Office (CSO), 2013. Annual percentage change of consumer price index. Available at: http://www.cso.ie/quicktables/GetQuickTables.aspx?FileName=CPA01C3.asp&TableName=Annual+Percentage+Change&StatisticalProduct=DB_CP [Accessed November 1, 2013].
Single Electricity Market Operator (SEMO), About SEMO. Available at: http://www.sem-o.com/AboutSEMO/Pages/default.aspx [Accessed March 27, 2014].
Thorner, T., Pratt, S.,Green, S.,Weaver, S.,Gonzalez, S.,Lau, A., 2005. The Economic Impact of CAES on Wind in TX , OK , and NM, Houston.
Tuohy, A., O’Malley, M., 2011. Pumped storage in systems with very high wind penetration. Energy Policy, 39(4), pp.1965–1974.
Downloads
Published
How to Cite
Issue
Section
License
The works published in this journal are subject to the following terms:
1. Oviedo University Press (the publisher) retains the property rights (copyright) of published works, and encourages and enables the reuse of the same under the license specified in paragraph 2.
© Ediuno. Ediciones de la Universidad de Oviedo / Oviedo University Press
2. The works are published in the online edition of the journal under a Creative Commons Attribution-Non Commercial-Non Derives 3.0 Spain (legal text). You can copy, use, distribute, transmit and publicly display, provided that: i) you cite the author and the original source of publication (journal, publisher and URL of the work), ii) they are not used for commercial purposes, iii) mentions the existence and specifications of this license.
3. Conditions of self-archiving. The author can archive the post-print version of the article (publisher’s version) on the author’s personal website and/or on the web of the institution where he belong, including a link to the page of the journal and putting the way of citation of the work. Economics and Business Letters and its URL https://reunido.uniovi.es/index.php/EBL/index are the only authorized source for correctly giving the reference of the publisher’s version in every mention of the article.
