Impact of Extensive Wind Power on Future Day-ahead Prices in the Nordic Electricity Market

Arslan Ahmad Bashir; John Millar; Mahdi Pourakbari-Kasmaei; Matti Lehtonen

doi:10.1109/ISGTEurope52324.2021.9640102

Impact of Extensive Wind Power on Future Day-ahead Prices in the Nordic Electricity Market

Arslan Ahmad Bashir, John Millar, Mahdi Pourakbari-Kasmaei, Matti Lehtonen

Research output: Chapter in Book/Report/Conference proceeding › Conference article in proceedings › Scientific › peer-review

1 Citation (Scopus)

Abstract

Due to the current policies of the EU on climate change, the energy generation mix of the future power system will be dominated by variable renewable energy (VRE) sources, such as wind power. These sources have a highly intermittent output in real-time and will significantly affect the equilibrium of day-ahead (DA) markets. This work simulates the future DA prices of the Nord-Pool Elspot market considering high penetrations of VRE added to the existing generation structure. The historical demand and supply curves are reconstructed, and the new equilibrium follows the parallel shifting of the supply curve in accordance with the hourly generation level of VRE sources. Moreover, the effect of demand response (DR) is also investigated and renders the demand curve shift able in both directions. Results demonstrate that even a moderate level of VRE drives the prices into high volatility while activating DR alleviates the situation to some extent.

Original language	English
Title of host publication	2021 IEEE PES Innovative Smart Grid Technologies Europe (ISGT Europe)
Publisher	IEEE
Number of pages	5
ISBN (Electronic)	978-1-6654-4875-8
ISBN (Print)	978-1-6654-4876-5
DOIs	https://doi.org/10.1109/ISGTEurope52324.2021.9640102
Publication status	Published - Dec 2021
MoE publication type	A4 Conference publication
Event	IEEE PES Europe Conference on Innovative Smart Grid Technologies - Aalto University, Espoo, Finland Duration: 18 Oct 2021 → 21 Oct 2021 https://ieee-isgt-europe.org/

Conference

Conference	IEEE PES Europe Conference on Innovative Smart Grid Technologies
Abbreviated title	ISGT-Europe
Country/Territory	Finland
City	Espoo
Period	18/10/2021 → 21/10/2021
Internet address	https://ieee-isgt-europe.org/

Keywords

Renewable energy sources
Costs
Correlation
Europe
Wind power generation
Electricity supply industry
Real-time systems

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

Access to Document

10.1109/ISGTEurope52324.2021.9640102

Cite this

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title = "Impact of Extensive Wind Power on Future Day-ahead Prices in the Nordic Electricity Market",

abstract = "Due to the current policies of the EU on climate change, the energy generation mix of the future power system will be dominated by variable renewable energy (VRE) sources, such as wind power. These sources have a highly intermittent output in real-time and will significantly affect the equilibrium of day-ahead (DA) markets. This work simulates the future DA prices of the Nord-Pool Elspot market considering high penetrations of VRE added to the existing generation structure. The historical demand and supply curves are reconstructed, and the new equilibrium follows the parallel shifting of the supply curve in accordance with the hourly generation level of VRE sources. Moreover, the effect of demand response (DR) is also investigated and renders the demand curve shift able in both directions. Results demonstrate that even a moderate level of VRE drives the prices into high volatility while activating DR alleviates the situation to some extent.",

keywords = "Renewable energy sources, Costs, Correlation, Europe, Wind power generation, Electricity supply industry, Real-time systems",

author = "Bashir, {Arslan Ahmad} and John Millar and Mahdi Pourakbari-Kasmaei and Matti Lehtonen",

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booktitle = "2021 IEEE PES Innovative Smart Grid Technologies Europe (ISGT Europe)",

publisher = "IEEE",

address = "United States",

note = "IEEE PES Europe Conference on Innovative Smart Grid Technologies, ISGT-Europe ; Conference date: 18-10-2021 Through 21-10-2021",

url = "https://ieee-isgt-europe.org/",

}

Bashir, AA, Millar, J , Pourakbari-Kasmaei, M & Lehtonen, M 2021, Impact of Extensive Wind Power on Future Day-ahead Prices in the Nordic Electricity Market. in 2021 IEEE PES Innovative Smart Grid Technologies Europe (ISGT Europe)., 9640102, IEEE, IEEE PES Europe Conference on Innovative Smart Grid Technologies, Espoo, Finland, 18/10/2021. https://doi.org/10.1109/ISGTEurope52324.2021.9640102

Impact of Extensive Wind Power on Future Day-ahead Prices in the Nordic Electricity Market. / Bashir, Arslan Ahmad; Millar, John ; Pourakbari-Kasmaei, Mahdi et al.
2021 IEEE PES Innovative Smart Grid Technologies Europe (ISGT Europe). IEEE, 2021. 9640102.

Research output: Chapter in Book/Report/Conference proceeding › Conference article in proceedings › Scientific › peer-review

TY - GEN

T1 - Impact of Extensive Wind Power on Future Day-ahead Prices in the Nordic Electricity Market

AU - Bashir, Arslan Ahmad

AU - Millar, John

AU - Pourakbari-Kasmaei, Mahdi

AU - Lehtonen, Matti

PY - 2021/12

Y1 - 2021/12

N2 - Due to the current policies of the EU on climate change, the energy generation mix of the future power system will be dominated by variable renewable energy (VRE) sources, such as wind power. These sources have a highly intermittent output in real-time and will significantly affect the equilibrium of day-ahead (DA) markets. This work simulates the future DA prices of the Nord-Pool Elspot market considering high penetrations of VRE added to the existing generation structure. The historical demand and supply curves are reconstructed, and the new equilibrium follows the parallel shifting of the supply curve in accordance with the hourly generation level of VRE sources. Moreover, the effect of demand response (DR) is also investigated and renders the demand curve shift able in both directions. Results demonstrate that even a moderate level of VRE drives the prices into high volatility while activating DR alleviates the situation to some extent.

AB - Due to the current policies of the EU on climate change, the energy generation mix of the future power system will be dominated by variable renewable energy (VRE) sources, such as wind power. These sources have a highly intermittent output in real-time and will significantly affect the equilibrium of day-ahead (DA) markets. This work simulates the future DA prices of the Nord-Pool Elspot market considering high penetrations of VRE added to the existing generation structure. The historical demand and supply curves are reconstructed, and the new equilibrium follows the parallel shifting of the supply curve in accordance with the hourly generation level of VRE sources. Moreover, the effect of demand response (DR) is also investigated and renders the demand curve shift able in both directions. Results demonstrate that even a moderate level of VRE drives the prices into high volatility while activating DR alleviates the situation to some extent.

KW - Renewable energy sources

KW - Costs

KW - Correlation

KW - Europe

KW - Wind power generation

KW - Electricity supply industry

KW - Real-time systems

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M3 - Conference article in proceedings

SN - 978-1-6654-4876-5

BT - 2021 IEEE PES Innovative Smart Grid Technologies Europe (ISGT Europe)

PB - IEEE

T2 - IEEE PES Europe Conference on Innovative Smart Grid Technologies

Y2 - 18 October 2021 through 21 October 2021

ER -

Impact of Extensive Wind Power on Future Day-ahead Prices in the Nordic Electricity Market

Abstract

Conference

Keywords

UN SDGs

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