Impact of wind power on the power system imbalances in Finland

Aleksi Helander, Hannele Holttinen, Jukka Paatero

    Research output: Contribution to conferenceConference articleScientific

    2 Citations (Scopus)

    Abstract

    This paper presents a study about the costs of balancing for wind power producers on the one hand and the cost incurred for the power system on the other hand. The general ideas about bidding in the electricity markets and paying balance settlement costs are illustrated with Nordic electricity market Nordpool and case data for one year in Finland. Both the producer side and the system side will be examined with case data on prediction errors, system net imbalances and the balancing costs. The up-scaled wind imbalances resulting from forecast errors have been combined with the system net imbalance. Comparisons and discussion about the balancing costs of wind power depending on the wind penetration is made. The results for case Finland show that two-price system for imbalances makes the imbalance costs clearly higher than one-price system. Both systems reflect the increase in costs as wind penetration increases. Increasing penetration level increases wind power prediction errors and they start to affect net system imbalances more. This can be seen also as the percentage of imbalances that are to the same side as system net imbalance. According to comparison, the increase in system costs due to wind power is lower than imbalance payments for wind power producers when using the average prices for up- and down-regulation, at least for up to 10 % penetration level in Finland.
    Original languageEnglish
    Pages183-187
    Publication statusPublished - 2008
    MoE publication typeNot Eligible
    EventSeventh International Workshop on Large-Scale Integration of Wind Power into Power Systems as well as on Transmission Networks for Offshore Wind Farms - Madrid, Spain
    Duration: 26 May 200827 May 2008

    Conference

    ConferenceSeventh International Workshop on Large-Scale Integration of Wind Power into Power Systems as well as on Transmission Networks for Offshore Wind Farms
    CountrySpain
    CityMadrid
    Period26/05/0827/05/08

    Fingerprint

    Wind power
    Costs

    Keywords

    • forecasting
    • wind energy
    • electricity markets
    • balancing costs
    • balance settlement

    Cite this

    Helander, A., Holttinen, H., & Paatero, J. (2008). Impact of wind power on the power system imbalances in Finland. 183-187. Paper presented at Seventh International Workshop on Large-Scale Integration of Wind Power into Power Systems as well as on Transmission Networks for Offshore Wind Farms, Madrid, Spain.
    Helander, Aleksi ; Holttinen, Hannele ; Paatero, Jukka. / Impact of wind power on the power system imbalances in Finland. Paper presented at Seventh International Workshop on Large-Scale Integration of Wind Power into Power Systems as well as on Transmission Networks for Offshore Wind Farms, Madrid, Spain.
    @conference{8645daf8a36e4714b52fe8fd28f4bbff,
    title = "Impact of wind power on the power system imbalances in Finland",
    abstract = "This paper presents a study about the costs of balancing for wind power producers on the one hand and the cost incurred for the power system on the other hand. The general ideas about bidding in the electricity markets and paying balance settlement costs are illustrated with Nordic electricity market Nordpool and case data for one year in Finland. Both the producer side and the system side will be examined with case data on prediction errors, system net imbalances and the balancing costs. The up-scaled wind imbalances resulting from forecast errors have been combined with the system net imbalance. Comparisons and discussion about the balancing costs of wind power depending on the wind penetration is made. The results for case Finland show that two-price system for imbalances makes the imbalance costs clearly higher than one-price system. Both systems reflect the increase in costs as wind penetration increases. Increasing penetration level increases wind power prediction errors and they start to affect net system imbalances more. This can be seen also as the percentage of imbalances that are to the same side as system net imbalance. According to comparison, the increase in system costs due to wind power is lower than imbalance payments for wind power producers when using the average prices for up- and down-regulation, at least for up to 10 {\%} penetration level in Finland.",
    keywords = "forecasting, wind energy, electricity markets, balancing costs, balance settlement",
    author = "Aleksi Helander and Hannele Holttinen and Jukka Paatero",
    note = "Project code: 4563; Seventh International Workshop on Large-Scale Integration of Wind Power into Power Systems as well as on Transmission Networks for Offshore Wind Farms ; Conference date: 26-05-2008 Through 27-05-2008",
    year = "2008",
    language = "English",
    pages = "183--187",

    }

    Helander, A, Holttinen, H & Paatero, J 2008, 'Impact of wind power on the power system imbalances in Finland', Paper presented at Seventh International Workshop on Large-Scale Integration of Wind Power into Power Systems as well as on Transmission Networks for Offshore Wind Farms, Madrid, Spain, 26/05/08 - 27/05/08 pp. 183-187.

    Impact of wind power on the power system imbalances in Finland. / Helander, Aleksi; Holttinen, Hannele; Paatero, Jukka.

    2008. 183-187 Paper presented at Seventh International Workshop on Large-Scale Integration of Wind Power into Power Systems as well as on Transmission Networks for Offshore Wind Farms, Madrid, Spain.

    Research output: Contribution to conferenceConference articleScientific

    TY - CONF

    T1 - Impact of wind power on the power system imbalances in Finland

    AU - Helander, Aleksi

    AU - Holttinen, Hannele

    AU - Paatero, Jukka

    N1 - Project code: 4563

    PY - 2008

    Y1 - 2008

    N2 - This paper presents a study about the costs of balancing for wind power producers on the one hand and the cost incurred for the power system on the other hand. The general ideas about bidding in the electricity markets and paying balance settlement costs are illustrated with Nordic electricity market Nordpool and case data for one year in Finland. Both the producer side and the system side will be examined with case data on prediction errors, system net imbalances and the balancing costs. The up-scaled wind imbalances resulting from forecast errors have been combined with the system net imbalance. Comparisons and discussion about the balancing costs of wind power depending on the wind penetration is made. The results for case Finland show that two-price system for imbalances makes the imbalance costs clearly higher than one-price system. Both systems reflect the increase in costs as wind penetration increases. Increasing penetration level increases wind power prediction errors and they start to affect net system imbalances more. This can be seen also as the percentage of imbalances that are to the same side as system net imbalance. According to comparison, the increase in system costs due to wind power is lower than imbalance payments for wind power producers when using the average prices for up- and down-regulation, at least for up to 10 % penetration level in Finland.

    AB - This paper presents a study about the costs of balancing for wind power producers on the one hand and the cost incurred for the power system on the other hand. The general ideas about bidding in the electricity markets and paying balance settlement costs are illustrated with Nordic electricity market Nordpool and case data for one year in Finland. Both the producer side and the system side will be examined with case data on prediction errors, system net imbalances and the balancing costs. The up-scaled wind imbalances resulting from forecast errors have been combined with the system net imbalance. Comparisons and discussion about the balancing costs of wind power depending on the wind penetration is made. The results for case Finland show that two-price system for imbalances makes the imbalance costs clearly higher than one-price system. Both systems reflect the increase in costs as wind penetration increases. Increasing penetration level increases wind power prediction errors and they start to affect net system imbalances more. This can be seen also as the percentage of imbalances that are to the same side as system net imbalance. According to comparison, the increase in system costs due to wind power is lower than imbalance payments for wind power producers when using the average prices for up- and down-regulation, at least for up to 10 % penetration level in Finland.

    KW - forecasting

    KW - wind energy

    KW - electricity markets

    KW - balancing costs

    KW - balance settlement

    M3 - Conference article

    SP - 183

    EP - 187

    ER -

    Helander A, Holttinen H, Paatero J. Impact of wind power on the power system imbalances in Finland. 2008. Paper presented at Seventh International Workshop on Large-Scale Integration of Wind Power into Power Systems as well as on Transmission Networks for Offshore Wind Farms, Madrid, Spain.