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

Research output: Chapter in Book/Report/Conference proceedingConference contributionScientificpeer-review

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 languageEnglish
Title of host publication2021 IEEE PES Innovative Smart Grid Technologies Europe (ISGT Europe)
PublisherIEEE
Number of pages5
ISBN (Electronic)978-1-6654-4875-8
ISBN (Print)978-1-6654-4876-5
DOIs
Publication statusPublished - Dec 2021
MoE publication typeA4 Article in a conference publication
EventIEEE PES Europe Conference on Innovative Smart Grid Technologies - Aalto University, Espoo, Finland
Duration: 18 Oct 202121 Oct 2021
https://ieee-isgt-europe.org/

Conference

ConferenceIEEE PES Europe Conference on Innovative Smart Grid Technologies
Abbreviated titleISGT-Europe
Country/TerritoryFinland
CityEspoo
Period18/10/202121/10/2021
Internet address

Keywords

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

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