What to expect from a greater geographic dispersion of wind farms?—A risk portfolio approach

The UK, like many other industrialised countries, is committed to reducing greenhouse gas emissions under the Kyoto Protocol. To achieve this goal the UK is increasingly turning towards wind power as a source of emissions free energy. However, the variable nature of wind power generation makes it an unreliable energy source, especially at higher rates of penetration. Likewise the aim of this paper is to measure the potential reduction in wind power variability that could be realised as a result of geographically dispersing the location of wind farm sites. To achieve this aim wind speed data will be used to simulate two scenarios. The first scenario involves locating a total of 2.7 gigawatts (GW) of wind power capacity in a single location within the UK while the second scenario consists of sharing the same amount of capacity amongst four different locations. A risk portfolio approach as used in financial appraisals is then applied in the second scenario to decide upon the allocation of wind power capacity, amongst the four wind farm sites, that succeeds in minimising overall variability for a given level of wind power generation. The findings of this paper indicate that reductions in the order of 36% in wind power variability are possible as a result of distributing wind power capacity.     

Assessment of the capacity credit of wind power in Mexico

A comprehensive assessment of the capacity credit of potential wind power developments in Mexico has been conducted for the first time. The analysis is based on an 80 m wind speed map generated from the North American Regional Reanalysis (NARR) data base and a set of restrictions, including proximity to transmission lines and major roads. Potential wind farm sites complying with all restrictions were populated with wind farms according to different scenarios; consecutive deployment of wind power from 1% to 15% system penetration was considered in all cases. In a set of one-region scenarios the evolution of the capacity credit was studied for different levels of intra-regional diversification. Near-generic decay according to a power law was observed at high penetration levels, whereas a notorious benefit was obtained from diversification at low and intermediate wind power penetration. In order to assess the potential benefits of inter-regional diversification, an optimization procedure was conducted. A significant improvement of the capacity credit decay curve was obtained for all levels of penetration. Optimal sets are characterized by a balanced utilization among regions with a relative insensitivity with respect to the exact composition of the wind farm set. The results are believed to be useful for the expansion planning of the Mexican electric grid.     

Comparison of China's oil import risk: Results based on portfolio theory and a diversification index approach

In recent years, the international oil price has fluctuated violently, bringing about huge risk for the international oil trade. In fact, the risk of crude oil and petroleum product imports is different because of the different import origins and prices. Which import risk is lower for China? From the perspective of oil supply security, how should China portfolio crude oil and petroleum product imports to minimize its oil import risk? Using portfolio theory and a diversification index approach, this paper compares and analyzes the supply, price and transport risks of crude oil and petroleum product imports. Our results show that the following: (1) Specific risk (diversification risk) and marine transport risk of China's petroleum product imports are lower than that of crude oil imports. (2) The average rate of return of China's petroleum product imports is higher than that of crude oil imports. Moreover, the average import price variance of petroleum product imports is lower than that of crude oil imports. Thus, the systematic risk (price risk) of petroleum products is lower too. Therefore, from the perspective of oil supply security, China should increase petroleum product imports to decrease its oil import risk.     

An assessment of governmental wind power programmes in Sweden—using a systems approach

The purpose of this paper is to assess the effects, the cost efficiency, and the goal achievement of policy instruments aimed for the development and deployment of wind power in Sweden during the period 1975 to 2000. The paper presents an empirical example of a socio-technical system-based approach for impact assessment, in which changes in the wind power system are described and analysed with respect to technology development, cost development and actors’ involvement. The results show that the policy instruments were not designed to have a broad, system-oriented perspective but targeted and included restricted technology concepts—i.e. large, two-bladed turbines—and limited involvement of actors. The assessment shows that early inflexible steering of technology and market development, together with a lack of comprehensive, long-term strategy, lack of continuity in policy interventions and weak combinations of policy programmes and measures have contributed to a very limited wind power development in Sweden. A rough cost efficiency analysis reveals that Sweden has much less wind power installed in relation to expenditures on various support than Germany and Spain. The Swedish policy instruments did, however, achieve the Government's goals to increase wind energy production.     

Investigation on wind power potential on Hong Kong islands—an analysis of wind power and wind turbine characteristics

This paper discusses the potential for electricity generation on Hong Kong islands through an analysis of the local weather data and typical wind turbine characteristics. An optimum wind speed, u_op, is proposed to choose an optimal type of wind turbine for different weather conditions. A simulation model has been established to describe the characteristics of a particular wind turbine. A case study investigation allows wind speed and wind power density to be obtained using different hub heights, and the annual power generated by the wind turbine to be simulated. The wind turbine's capacity factor, being the ratio of actual annual power generation to the rated annual power generation, is shown to be 0.353, with the capacity factor in October as high as 0.50. The simulation shows the potential for wind power generation on the islands surrounding Hong Kong.     

A portfolio analysis model of the demand for nuclear power plants

Electric utilities are characterized as timid risk averters that select coal or nuclear plants or both, where the levellized cost of each is characterized by considerable risk. A portfolio selection model is developed to explain the historical demand for nuclear reactors by region. Some qualitative policy implications are derived with respect to the DOE's objective of reviving the nuclear power market.     

Portfolio theory application in wind potential assessment

Development of a wind farm project includes a lot of interconnected steps and one of the most important ones is the proper energy yield assessment. Wind energy yield assessment is typically based on wind measurements on a measurement mast that are later used in one of the wind flow software models. In cases where there are multiple wind measurements on the potential wind farm site, a question arises on how to optimally use all the available data. This paper shows a method of using such data through the application of the portfolio theory, a well-established theory in economics and frequently used in other scientific disciplines. The method shown is very flexible in terms of input data and software models, and the results of its application show that it is possible to increase accuracy and reduce uncertainty of energy yield assessment. The key result of the method is the possibility to achieve better quality of input data for the energy yield assessment without spending additional resources. The method opens up a wide space for further research and improvements, all with the objective of achieving better results of energy yield assessment and finally, better prepared wind project.     

A combined modeling approach for wind power feed-in and electricity spot prices

Wind power generation and its impacts on electricity prices has strongly increased in the EU. Therefore, appropriate mark-to-market evaluation of new investments in wind power and energy storage plants should consider the fluctuant generation of wind power and uncertain electricity prices, which are affected by wind power feed-in (WPF). To gain the input data for WPF and electricity prices, simulation models, such as econometric models, can serve as a data basis.This paper describes a combined modeling approach for the simulation of WPF series and electricity prices considering the impacts of WPF on prices based on an autoregressive approach. Thereby WPF series are firstly simulated for each hour of the year and integrated in the electricity price model to generate an hourly resolved price series for a year. The model results demonstrate that the WPF model delivers satisfying WPF series and that the extended electricity price model considering WPF leads to a significant improvement of the electricity price simulation compared to a model version without WPF effects. As the simulated series of WPF and electricity prices also contain the correlation between both series, market evaluation of wind power technologies can be accurately done based on these series.     

A probabilistic security assessment approach to power systems with integrated wind resources

Renewable energy sources, such as wind and photovoltaic solar, have added additional uncertainty to power systems. These sources, further to the conventional sources of uncertainty due to stochastic nature of both the load and the availability of generation resources and transmission assets, make clear the limitations of the conventional deterministic power flow in power system analysis and security assessment applications. In order to manage uncertainties, probabilistic approaches can provide a valuable contribution.In this paper, we propose a new scheme for probabilistic security assessment. The model can deal with various types of probability distributions modeling power injections and can explicitly represent the effects on system security of correlation among nodal power injections (such as wind power) and of contingencies due to branch and generating unit outages. In addition, the steady-state behavior of the frequency regulation is explicitly included in the model. A new approach to deal with current limits is also proposed.Extensive testing on both the modified IEEE-14 bus test system and the Sicilian power system indicates good performance of the proposed approach in comparison with the result obtained by the computationally more demanding Monte Carlo approach.     

The variability of interconnected wind plants

We present the first frequency-dependent analyses of the geographic smoothing of wind power’s variability, analyzing the interconnected measured output of 20 wind plants in Texas. Reductions in variability occur at frequencies corresponding to times shorter than ∼24 h and are quantified by measuring the departure from a Kolmogorov spectrum. At a frequency of 2.8×10⁻⁴ Hz (corresponding to 1 h), an 87% reduction of the variability of a single wind plant is obtained by interconnecting 4 wind plants. Interconnecting the remaining 16 wind plants produces only an additional 8% reduction. We use step change analyses and correlation coefficients to compare our results with previous studies, finding that wind power ramps up faster than it ramps down for each of the step change intervals analyzed and that correlation between the power output of wind plants 200 km away is half that of co-located wind plants. To examine variability at very low frequencies, we estimate yearly wind energy production in the Great Plains region of the United States from automated wind observations at airports covering 36 years. The estimated wind power has significant inter-annual variability and the severity of wind drought years is estimated to be about half that observed nationally for hydroelectric power.     

A review on reliability assessment for wind power

The application of wind energy in electric power systems is growing rapidly due to enhanced public concerns to adverse environmental impacts and escalation in energy costs associated with the use of conventional energy sources. Electric power from wind energy is quite different from that of conventional resources. The fundamental difference is that the wind power is intermittent and uncertain. Therefore, it affects the reliability of power system in a different manner from that of the conventional generators. This paper, from available literatures, presents the model of wind farms and the methods of wind speed parameters assessment. Two main categories of methods for evaluating the wind power reliability contribution, i.e., the analytical method and the Monte Carlo simulation method have been reviewed. This paper also summarizes factors affecting the reliability of wind power system, such as wake effect, correlation of output power for different windturbines, effect of windturbine parameters, penetration and environment. An example has been used to illustrate how these factors affect the reliability of wind power system. Finally, mainstream reliability indices for evaluating reliability are introduced. Among these reliability indices, some are recently developed, such as wind generation interrupted energy benefit (WGIEB), wind generation interruption cost benefit (WGICB), Equivalent Capacity Rate (ECR), load carrying capacity benefit ratio (LCCBR).     

Spatial dependence in wind and optimal wind power allocation: A copula-based analysis

The investment decision on the placement of wind turbines is, neglecting legal formalities, mainly driven by the aim to maximize the expected annual energy production of single turbines. The result is a concentration of wind farms at locations with high average wind speed. While this strategy may be optimal for single investors maximizing their own return on investment, the resulting overall allocation of wind turbines may be unfavorable for energy suppliers and the economy because of large fluctuations in the overall wind power output. This paper investigates to what extent optimal allocation of wind farms in Germany can reduce these fluctuations. We analyze stochastic dependencies of wind speed for a large data set of German on- and offshore weather stations and find that these dependencies turn out to be highly nonlinear but constant over time. Using copula theory we determine the value at risk of energy production for given allocation sets of wind farms and derive optimal allocation plans. We find that the optimized allocation of wind farms may substantially stabilize the overall wind energy supply on daily as well as hourly frequency.     

Understanding the variability of wind power costs

Wind power has a significant contribution to make in efforts to abate CO₂ emissions from global energy systems. Currently, wind power generation costs are approaching parity with costs attributed to conventional, carbon-based sources of energy but the economic advantage still rests decidedly with conventional sources. Therefore, there is an imperative to ensure that wind power projects are developed in the most economically optimal fashion. For wind power project developers, shaving a few tenths of a cent off of the kilowatts per hour cost of wind power can mean the difference between a commercially viable project and a non-starter. For civic authorities who are responsible for managing municipally supported wind power projects, optimizing the economics of such projects can attenuate stakeholder opposition. This paper attempts to contribute to a better understanding of how to economically optimise wind power projects by conflating research from the fields of energy economics, wind power engineering, aerodynamics, geography and climate science to identify critical factors that influence the economic optimization of wind power projects.     

The impact of wind power on electricity prices

This paper investigates the impact of wind power on electricity prices using a production cost model of the Independent System Operator – New England power system. Different scenarios in terms of wind penetration, wind forecasts, and wind curtailment are modeled in order to analyze the impact of wind power on electricity prices for different wind penetration levels and for different levels of wind power visibility and controllability. The analysis concludes that electricity price volatility increases even as electricity prices decrease with increasing wind penetration levels. The impact of wind power on price volatility is larger in the shorter term (5-min compared to hour-to-hour). The results presented show that over-forecasting wind power increases electricity prices while under-forecasting wind power reduces them. The modeling results also show that controlling wind power by allowing curtailment increases electricity prices, and for higher wind penetrations it also reduces their volatility.     

Variability in large‐scale wind power generation

The paper demonstrates the characteristics of wind power variability and net load variability in multiple power systems based on real data from multiple years. Demonstrated characteristics include probability distribution for different ramp durations, seasonal and diurnal variability and low net load events. The comparison shows regions with low variability (Sweden, Spain and Germany), medium variability (Portugal, Ireland, Finland and Denmark) and regions with higher variability (Quebec, Bonneville Power Administration and Electric Reliability Council of Texas in North America; Gansu, Jilin and Liaoning in China; and Norway and offshore wind power in Denmark). For regions with low variability, the maximum 1 h wind ramps are below 10% of nominal capacity, and for regions with high variability, they may be close to 30%. Wind power variability is mainly explained by the extent of geographical spread, but also higher capacity factor causes higher variability. It was also shown how wind power ramps are autocorrelated and dependent on the operating output level. When wind power was concentrated in smaller area, there were outliers with high changes in wind output, which were not present in large areas with well‐dispersed wind power. Copyright © 2015 John Wiley & Sons, Ltd.     

General statistics of geographically dispersed wind power

The paper examines the variability of wind power generated by wind farms that are geographically dispersed in a region. The reduced variability of wind power generation with increasing region size and number of wind farms is referred to as the smoothing effect. In this paper, the smoothing effect is quantified by changes in standard deviation, skewness and kurtosis of hourly wind power generation and its temporal gradients. General approximative equations are derived that allow the calculation of these parameters in dependence of the region size and the mean generation. It is shown from which point on the smoothing effect depends only on the region size and no longer on the number of wind farms. Upscaling can then be an appropriate method to simulate future wind power generation as smoothing effects are no longer neglected. This paper also shows how approximative duration curves of wind power generation or its temporal gradients can be simulated by means of the calculated parameters. Hence, the analysis can be used to assess unmeasured or potential wind power generation i n a region. The presented approach and equations are verified by German and Irish generation data. Copyright © 2010 John Wiley & Sons, Ltd.     

The assessment of actual wind power availability in ireland

Data on actual wind energy availability in Ireland are sparse. This is because (a) relatively little data on wind speeds have been collected in Ireland at sites of interest for wind exploitation, and (b) such data need in any case to be integrated with the characteristics of actual windmills which respond more efficiently to certain wind speed than to others. This paper describes a methodology for performing such an integration, and offers tables of specific output for windmills of different characteristics located at different sites in Ireland. the variations in this specific output are discussed.     

A review of energy storage technologies for wind power applications

Due to the stochastic nature of wind, electric power generated by wind turbines is highly erratic and may affect both the power quality and the planning of power systems. Energy Storage Systems (ESSs) may play an important role in wind power applications by controlling wind power plant output and providing ancillary services to the power system and therefore, enabling an increased penetration of wind power in the system. This article deals with the review of several energy storage technologies for wind power applications. The main objectives of the article are the introduction of the operating principles, as well as the presentation of the main characteristics of energy storage technologies suitable for stationary applications, and the definition and discussion of potential ESS applications in wind power, according to an extensive literature review.     

Profiling the regional wind power fluctuation in China

As China starts to build 6 10-GW wind zones in 5 provinces by 2020, accommodating the wind electricity generated from these large wind zones will be a great challenge for the regional grids. Inadequate wind observing data hinders profiling the wind power fluctuations at the regional grid level. This paper proposed a method to assess the seasonal and diurnal wind power patterns based on the wind speed data from the NASA GEOS-5 DAS system, which provides data to the study of climate processes including the long-term estimates of meteorological quantities. The wind power fluctuations for the 6 largest wind zones in China are presented with both the capacity factor and the megawatt wind power output. The measured hourly wind output in a regional grid is compared to the calculating result to test the analyzing model. To investigate the offsetting effect of dispersed wind farms over large regions, the regional correlations of hourly wind power fluctuations are calculated. The result illustrates the different offsetting effects of minute and hourly fluctuations.     

The regional electricity generation mix in Scotland: A portfolio selection approach incorporating marine technologies

Standalone levelised cost assessments of electricity supply options miss an important contribution that renewable and non-fossil fuel technologies can make to the electricity portfolio: that of reducing the variability of electricity costs, and their potentially damaging impact upon economic activity. Portfolio theory applications to the electricity generation mix have shown that renewable technologies, their costs being largely uncorrelated with non-renewable technologies, can offer such benefits. We look at the existing Scottish generation mix and examine drivers of changes out to 2020. We assess recent scenarios for the Scottish generation mix in 2020 against mean-variance efficient portfolios of electricity-generating technologies. Each of the scenarios studied implies a portfolio cost of electricity that is between 22% and 38% higher than the portfolio cost of electricity in 2007. These scenarios prove to be mean-variance “inefficient” in the sense that, for example, lower variance portfolios can be obtained without increasing portfolio costs, typically by expanding the share of renewables. As part of extensive sensitivity analysis, we find that Wave and Tidal technologies can contribute to lower risk electricity portfolios, while not increasing portfolio cost.