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Impacts of wind power on energy balance of a hydro dominated power system EWEC 2006, Athens MSc Juha Kiviluoma, VTT PhD Hannele Holttinen, VTT

Impacts of wind power on energy balance of a hydro dominated power system EWEC 2006, Athens MSc Juha Kiviluoma, VTT PhD Hannele Holttinen, VTT

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Impacts of wind power on energy balance of a hydro dominated power system

EWEC 2006, Athens

MSc Juha Kiviluoma, VTT

PhD Hannele Holttinen, VTT

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Background

Based on model developed in EU-project WILMAR (Wind power integration in liberalised electricity markets)

– Risoe, IER at University of Stutgart, Sintef, VTT, KTH, IMM at Technical University of Denmark, Elkraft, Elsam, Nord Pool Consulting

The work continues in IEA Annex on Wind & hydro and the model development in EU-project SupWind

These results part of PhD thesis work of Juha Kiviluoma– Large increases of wind and other renewables in the energy

system

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Research questions

How hydro power regulates large amounts of wind power in hydro dominated system?

How the energy balance of the hydro dominated system changes with large amounts of wind power?

Which power plants are affected? How the prices change?

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Model description

Market model of Nordic countries and Germany Hourly time-scale Spot market horizon Long term model for water values Stochastic presentation of wind (not used in this) Quite detailed unit presentation Also heat areas for CHP Primary and secondary reserves (dependant on wind) See Meibom at DS1 on Thursday morning

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Cases

base 10% 20% 30%

Wind capacity [GW]

NO+SE+FI

Germany

Denmark

2.5

28.6

4.1

17.8

35.8

4.6

35.7

35.8

4.6

52.5

35.8

4.6

Energy from wind NO+SE+FI+DK [TWh]

16 49 87 119

The modelled year has 2001 profile for hydro, wind, load and heat demand

Not very windyAverage hydro year

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Assumptions

17 €/CO2 ton Fuel price scenario Planned transmission lines up to 2010

– Fennoska II 800 MW– Storaebelt 600 MW – NorNed 700 MW (connected to Germany)– Some Nordel internal connections

Import time series from Russia and Poland Announced power plants and decomissionings until

2010 Wind is added as extra production, no capacity

taken away

Model prices

Current prices (Finland)

IEA (2010)

IEA (2030)

Light oil 53 113 $/barrel

Fuel oil 46 66 $/barrel

Crude oil 60 22 29 $/barrel

Coal 74 69 40 44 $/t

Nat_gas (Europe) 8.4 5.9 3.3 4.3 $/Mbtu

Model [€2002/GJ]

Woodwaste 4

Wood 4.3

Straw 4.4

Waste 0

Peat 1.5

Light oil 7.2

Fuel oil 6.2

Coal 2.3

Natural gas 6.2

Nuclear 0.35

0 20 40 60 80 100

01 CHP 03 Cond 04 Hydro 05 RoR 06 Wind

0 20 40 60 80 100

0 20 40 60 80 100

0 20 40 60 80 100

0 20 40 60 80 100

0 20 40 60 80 100

0 20 40 60 80 100

0 20 40 60 80 100

0 20 40 60 80 1000 20 40 60 80 100

0 100 200 300 400 500

0 20 40 60 80 100

Production [TWh] in 2010 base case

FI_R

NO_N

NO_M

NO_S

SE_N

SE_M

SE_SDK_W

DK_E

DE_NW DE_NE

DE_CS

base case: production, consumption and transmission [MWh/h]

10% case: production, consumption and transmission [MWh/h]

MW

h

20% case: production, consumption and transmission [MWh/h]

MW

h

30% case: production, consumption and transmission [MWh/h]

MW

h

Prices [€/MWh]base 10 %

20 % 30 %

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Regulation cases in 30% wind case

Hydro:NO 28 GWSE 16 GWFI 3 GWSum 47 GW

Highest one-hour drop in wind 30 GW 13 GW

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Regulation cases in 30% wind case

High consumption – low wind Nuclear and hydro regulate

Hydro:NO 28 GWSE 16 GWFI 3 GWSum 47 GW

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Conclusions

20-30% wind penetration changes the utilisation of other power production decisively

Wind will affect power prices strongly if penetration gets high At least in the modelled year, hydro power can regulate wind

to such extent that usage other condensing than nuclear is minimal (could be covered by demand side measures)

Limitations for wind are most likely in available sites and transmission rather than in regulation

0

10

20

30

40

50

60

€/M

Wh

base

10%

20%

30%

Nordicpricedurationcurve

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Discussion

Power price will drop if countermeasures are not taken Additional connections to the continental grid would keep the

prices up and provide profits Possibility of increased consumption: heat pumps, industry,

traffic sector (oil dependency on agenda) Price drop obstacle also for wind Market failure?

0

10

20

30

40

50

60

€/M

Wh

base

10%

20%

30%

Nordicpricedurationcurve