Tuesday, May 22, 2012

Energy Economics

Claudia Aravena highlight the the importance of economy in the energy system some issues are:

¨     Energy Policy
¨     Climate Policy
¨     Aspects of electricity market design
¨     Renewable energy technologies
¨     Renewable integration
¨     Interconnection
¨     Behavioural aspects of energy demand
¨     Electric vehicles
¨     Energy Efficiency
¨     Policy instruments (e.g. subsidies, taxes, incentives)

Claudia is introducing Muireann Lynch:
Optimal interconnection and renewable targets in North-West Europe
Interconnection it is really important to increase the capacity factors and diversify supply and increase the renewable penetration and arbitrage opportunities
from an EU prospective we can increase investment in less-favourable areas
Research Questions:
Where should we build interconnection?
How do renewable targets change the story?
How to get best value from assets?

We set Objective function and constraints. Assume new interconnection have a capacity of 1 GW.
Iterative Approach to find the optimal connection.
We run different Scanarios to find the optimal interconnection
Results:

Conclusion
Interconnection has value primarily as facilitator of variable renewables.
Design of targets has an impact on the value of interconnection – and indeed renewables

Amy O’MahoneyThe Merit Order Effect of Wind


This paper considers the cost savings arising from wind generation through the meritorder effect in gross pool electricity markets


She is explain the Merit Order Effect on the electricity Market. The Case Study is Ireland.


The aim is quantify the cost savings arising from wind generation through the merit order effect in gross pool electricity markets


Results:

Estimated savings €141 million
Total market dispatch  €1,484 million
Without wind, prices would have been 12% higher




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