Economic Impact Assessment of using Congestion Management Methods to enable increased Wind Power Integration on Gotland, Sweden

• Congestion management methods are useful regulatory mechanisms to prevent transmission capacity problems.This paper intends to assess whether congestion management can be cost-efficiently used to postpone or even avoid network capacity reinforcements while increasing the hosting capacity of wind power on the island of Gotland in Sweden. Two methods,re-dispatch and market splitting, are studied in detail and applied to the Gotland case. A simplified electricity market model using historical data from Gotland was designed to perform the simulations. These methods pass on the cost of lack of transmission capacity to different actors in the electricity market (mainly grid owner for re-dispatch and consumers and producers for market splitting). Simulations indicate however that both methods could be employed to raise the installed production capacity of wind power on Gotland by at least 26 MW above the stated limit of 195 MW without negatively impacting the income of any actor. Moreover, market splitting efficiently reflects the transmission problems on the energy price of Gotland, thus giving economic incentive for flexible power consumption to alleviate the problems.

Ämnesord

TEKNIK OCH TEKNOLOGIER  -- Elektroteknik och elektronik -- Annan elektroteknik och elektronik (hsv//swe)

ENGINEERING AND TECHNOLOGY  -- Electrical Engineering, Electronic Engineering, Information Engineering -- Other Electrical Engineering, Electronic Engineering, Information Engineering (hsv//eng)

Nyckelord

Electrical Engineering

Elektro- och systemteknik

Publikations- och innehållstyp

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