Assessing the future economic performance of wind generation in conjunction with compressed air energy storage in the new proposed Irish electricity market
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.
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