Well-functioning balancing markets: A prerequisite for wind power integration

By L. Vandezande, Leonardo Meeus, Ronnie J. M. Belmans, M. Saguan, J. Glachant. 2010

218 citations recorded by the source corpus.

This article focuses on the design of balancing markets in Europe taking into account an increasing wind power penetration. In several European countries, wind generation is so far not burdened with full balancing responsibility. However, the more wind power penetration, the less bearable for the system not to allocate balancing costs to the responsible parties. Given the variability and limited predictability of wind generation, full balancing exposure is however only feasible conditionally to well-functioning balancing markets. On that account, recommendations ensuring an optimal balancing market design are formulated and their impact on wind generation is assessed. Taking market-based or cost-reflective imbalance prices as the main objective, it is advised that: (1) the imbalance settlement should not contain penalties or power exchange prices, (2) capacity payments should be allocated to imbalanced BRPs via an additive component in the imbalance price and (3) a cap should be imposed on the amount of reserves. Efficient implementation of the proposed market design may require balancing markets being integrated across borders.

Subfields: Electrical and Electronic Engineering, Renewable Energy, Sustainability and the Environment

View Paper: https://www.semanticscholar.org/paper/6a0cad9b014b436f64a3b3211f9a68b57fe10329

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Electrical and Electronic Engineering

1. M. Joos
2. Lion Hirth
3. Iain Staffell
4. Inka Ziegenhagen
5. Karsten Neuhoff
6. L. Reichenberg
7. Tu Berlin
8. Tom Brown

In Renewable Energy, Sustainability and the Environment

1. M. Joos
2. Lion Hirth
3. Iain Staffell
4. Karsten Neuhoff
5. B. Hintermann
6. C. Spash

Citations in the corpus

• Identifying barriers to large-scale integration of variable renewable electricity into the electricity market : A literature review of market design (2018, unknown): “Germany) to strengthen incentives for BRPs to reduce own imbalances [120,121].”
• Balancing and Intraday Market Design: Options for Wind Integration (2011, background): “The primary constraint to harmonisation of balancing markets is that these markets significantly differ in their market setup (Vandezande et al, 2010).”
• Balancing power and variable renewables: Three links (2015, background): “[116] discuss economic aspects of market design.”
• Short-term integration costs of variable renewable energy: Wind curtailment and balancing in Britain and Germany (2018, background): “Notable among these are the inclusion of capacity payments [137,138] (opposed by ACER [139]), and the use of uniform pricing [93,140].”