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.