Simulating price patterns for tradable green certificates to promote electricity generation from wind

This article uses computer simulation to anticipate the price dynamics in a market for Tradable Green Certificates (TGCs). These markets have been used in Europe to promote generation of electricity from renewable resources like wind. Similar markets have been proposed in the United States of America (USA) where the certificates are called Renewable Energy Credits (RECs). The certificates are issued to the generating companies for each megawatt-hour of renewable electricity generation. The companies may sell the certificates in a market, and the revenues from certificate sales provide an extra incentive to invest in new generating capacity. Proponents argue that this market-based incentive can be designed to support government mandates for a growing fraction of electricity generation from renewable sources. In the USA, these mandates are set by the states and are known as Renewable Portfolio Standards (RPS).     

Wind energy and assessment of wind energy potential in Turkey

In this study, the potential of wind energy and assessment of wind energy systems in Turkey were studied. The main purpose of this study is to investigate the wind energy potential and future wind conversion systems project in Turkey. The wind energy potential of various regions was investigated; and the exploitation of the wind energy in Turkey was discussed. Various regions were analyzed taking into account the wind data measured as hourly time series in the windy locations. The wind data used in this study were taken from Electrical Power Resources Survey and Development Administration (EIEI) for the year 2010. This paper reviews the assessment of wind energy in Turkey as of the end of May 2010 including wind energy applications. Turkey's total theoretically available potential for wind power is around 131,756.40 MW and sea wind power 17,393.20 MW annually, according to TUREB (TWEA). When Turkey has 1.5 MW nominal installed wind energy capacity in 1998, then this capacity has increased to 1522.20 MW in 2010. Wind power plant with a total capacity of 1522.20 MW will be commissioned 2166.65 MW in December 2011.     

The development of a green certificate market

Liberalizing the electricity industry and attempting to reduce the emissions of greenhouse gases are the two dominant trends in European energy policy. The last-mentioned issue might require the contribution from renewable energy technologies, but at present most renewables cannot compete on their own with conventional technologies. Thus, it can be expected that if renewables must compete solely on market conditions alone this will slow down or even halt the development of new renewable capacity. One model in which additional payments to renewable technologies are generated is based on the development of a separate green market. In Holland a voluntary green certificate market has existed since the beginning of 1998. In Denmark a comprehensive restructuring of the legislation for the electric power industry has just been completed, including the framework for developing a separate green market for renewable electricity production. The main objectives of introducing this type of electricity market in Denmark is to secure the development of renewable energy technologies (including contributions to greenhouse gas reductions), while at the same time releasing the Government from the (by now) quite heavy burden of subsidising renewable technologies. Finally, a green market will make it possible for these renewable technologies to be partly economically compensated for the environmental benefits, which they generate compared to conventional power production. With the recent Danish legislation as starting point this paper analyzes possible ways to set up a green certificate market, treating as well some of the consequences produced when the market is actually funtioning. The analysis is applicable for all renewable technologies, but special attention is given to wind power.     

A transition toward a market expansion phase: Policies for promoting wind power in Taiwan

Considering the significant issues on global warming and environmental protection, the energy sector needs a long-term policy, by which renewable energies gradually replace conventional fossil fuels. In terms of an energy system, the development of renewable energies implies a challenge to existing energies like fossil fuels and nuclear power that have been for decades equipped with sound infrastructure and regulations. And a transformation of the energy system cannot expect any achievement without overcoming considerable opposition from vested interests involved with the fossil fuels technologies.     

Between fragmented authoritarianism and policy coordination: Creating a Chinese market for wind energy

The Chinese grid-connected wind energy sector has undergone a number of fundamental changes during its 20 years of existence. The scope of this article is to track the reforms of the energy bureaucracy and its policy approach on the one hand and changes in wind energy installations on the other. By comparing three historically distinct phases of wind energy in China it is shown how policy reforms have changed largely from a state of “fragmented authoritarianism” towards policy coordination. In the initial phase (1986–1993), wind energy was expanding very slowly with disjointed policy making and in the incremental phase (1994–1999), the energy authorities were in dispute over the strategy and launched conflicting policy initiatives with poor results in wind energy output. The latest coordinated phase (2000–2006), however, developed a coherent renewable energy agenda and policy regime for the wind power sector. It is found that this phase with coordinated market regulations and incentives has helped give birth to a take-off in Chinese wind energy installations and substantial cost reductions, although the latter is threatening the profitability of wind farms. The article contributes to the academic debate over the role of policy making in renewable energy development and argues that China should continue, and improve, the coordination of regulations and incentives.     

Contribution of green energy sources to electrical power production of Turkey: A review

Green power products may be seen as a means of fostering renewable energy sources (RES) because they create and channel consumer demand for environmentally sound power generation. Turkey also has a large potential for renewable energy exploitation in a number of areas. Clean, domestic and renewable energy is commonly accepted as the key for future life, not only for Turkey but also for the world. The renewable energy contribution in the total primary energy production is insignificant. The alternative and renewable energy systems have been neglected so far in Turkey but must be included in the new energy programs. In this context, Renewable Energy Law was enacted in 2005 in order to encourage renewable-based generation in competitive market conditions. Supporting mechanisms such as feed-in tariffs and purchase obligation are defined in the law, in conformity with the EU legislation and practice. These mechanisms are envisaged to facilitate the development of power plants based on RES.     

Large-scale integration of wind power into the existing Chinese energy system

This paper presents the ability of the existing Chinese energy system to integrate wind power and explores how the Chinese energy system needs to prepare itself in order to integrate more fluctuating renewable energy in the future. With this purpose in mind, a model of the Chinese energy system has been constructed by using EnergyPLAN based on the year 2007, which has then been used for investigating three issues. Firstly, the accuracy of the model itself has been examined and then the maximum feasible wind power penetration in the existing energy system has been identified. Finally, barriers have been discussed and suggestions proposed for the Chinese energy system to integrate large-scale renewable energy in the future. It is concluded that the model constructed by the use of EnergyPLAN can accurately simulate the Chinese energy system. Based on current regulations to secure grid stability, the maximum feasible wind power penetration in the existing Chinese energy system is approximately 26% from both technical and economic points of view. A fuel efficiency decrease occurred when increasing wind power penetration in the system, due to its rigid power supply structure and the task of securing grid stability, was left primarily to large coal-fired power plants. There are at least three possible solutions for the Chinese energy system to integrate large-scale fluctuating renewable energy in the long term: Redesigning the regulations to secure grid stability by means of diversifying the participants, such as including hydropower and CHP plants; integrating large-scale heat pumps combined with heat storage devices to satisfy district heat demands and developing electric vehicles to promote off peak electricity utilisation.     

Auctioning wind power sites when environmental quality matters

In this work, we propose an index that allows a public authority to order different projects for the construction of onshore wind energy plants and that explicitly takes into account their environmental quality. Wind farm projects are defined as vectors of four attributes: the technical properties of each project, its social impact, its environmental impact, and the share of earnings that proponents offer to the collectivity in compensation for the negative externalities of the wind plant. We define an absolute index that allows the ordering of different proposals and evaluation of the acceptability of each project, providing the monetary value of each point and inducing a truthful revelation of firms' private information. Moreover, we calibrate the index on the basis of data referring to wind plants in Southern Italy and derive the corresponding iso-scoring curves.     

The effectiveness of different policy regimes for promoting wind power: Experiences from the states

Governments at the state (and to a lesser extent, local) level in the United States have adopted an array of policies to promote wind and other types of “green” energy, including solar, geothermal, low-impact hydropower, and certain forms of biomass. However, because of different regulatory environments, energy resource endowments, political interests, and other factors, there is considerable variation among the states in their green power policies. This paper analyzes the contribution to wind power development of several state-level policies (renewable portfolio standards (RPS), fuel generation disclosure rules, mandatory green power options, and public benefits funds), along with retail choice (RET) facilitated by electricity restructuring. The empirical results support existing anecdotal and case studies in finding a positive relationship between RPS and wind power development. We also found that requiring electricity suppliers to provide green power options to customers is positively related to development of wind energy, while there is a negative relationship between wind energy development and RET (i.e., allowing retail customers to choose their electricity source).     

Modelling of energy systems with a high percentage of CHP and wind power

This paper presents the energy system analysis model EnergyPLAN, which has been used to analyse the integration of large scale wind power into the national Danish electricity system. The main purpose of the EnergyPLAN model is to design suitable national energy planning strategies by analysing the consequences of different national energy investments. The model emphasises the analysis of different regulation strategies and different market economic optimisation strategies.At present wind power supply 15% of the Danish electricity demand and ca 50% is produced in CHP (combined heat and power production). The model has been used in the work of an expert group conducted by the Danish Energy Agency for the Danish Parliament. Results are included in the paper in terms of strategies, in order to manage the integration of CHP and wind power in the future Danish energy supply in which more than 40% of the supply is expected to come from wind power.     

Renewable-based generation expansion under a green certificate market

Quota obligations represent a policy instrument to reduce carbon emissions and incentivize renewable-based electricity generation. This support scheme places an obligation on generating companies to comply with a quota of renewable-based production. Eligible renewable units receive one certificate for each MWh, while fossil-based generating companies must buy certificates to comply with the requirement. This paper proposes a family of generation expansion models that include both an electricity and a certificate market to investigate to which degree a given quota obligation and non-compliance penalty incentivize the capacity expansion of renewable-based generation. Two market players are considered, namely, a renewable-based generating company with null operating cost and a weather-dependent capacity factor; and a fossil-based generating company with a fixed capacity and known fuel cost function. First, a complementarity model that determines the optimal capacity of the renewable-based producer considering a perfectly competitive market is proposed. Next, market players are assumed to compete in quantities à la Cournot to maximize their profits, being the generation expansion model formulated as a mathematical problem with equilibrium constraints. The relevance of properly setting the non-compliance penalty for each level of competition to comply with a given quota obligation is quantified and discussed using an stylized example.     

Electricity restructuring in Turkey and the share of wind energy production

This paper presents the current status of Turkey's electricity power sector, efforts for introducing competition in the Turkey's power industry, and concerns with the restructuring in Turkey. Turkey include long-term high-cost agreements, low quality of power, and therefore restrictions for synchronization with UCTE network, increase in the reliance on imported natural gas, and the urgent need for highly qualified staff that would be capable of fast and reliable implementation of ongoing reforms in the electricity sector. The contribution of the exploiting wind energy potential in Turkey to reconstruction of Turkey electricity structure is investigated. The strong development of wind energy in Turkey is expected to continue in the coming years.     

Effect of wind energy system performance on optimal renewable energy model-an analysis

The Optimal Renewable Energy Model (OREM) has been developed to determine the optimum level of renewable energy sources utilisation in India for the year 2020–21. The model aims at minimising costefficiency ratio and determines the optimum allocation of different renewable energy sources for various end-uses. The extent of social acceptance level, potential limit, demand and reliability will decide the renewable energy distribution pattern and are hence used as constraints in the model. In this paper, the performance and reliability of wind energy system and its effects on OREM model has been analysed. The demonstration windfarm (4 MW) which is situated in Muppandal, a village in the southern part of India, has been selected for the study. The windfarm has 20 wind turbine machines of 200 KW capacity. The average technical availability, real availability and capacity factor have been analysed from 1991 to 1995 and they are found to be 94.1%, 76.4% and 25.5% respectively. The reliability factor of wind energy system is found to be 0.5 at 10,000 hours. The OREM model is analysed considering the above said factors for wind energy system, solar energy system and biomass energy systems. The model selects wind energy for pumping end-use to an extent of 0.3153×10¹⁵ KJ.     

Successful renewable energy development in a competitive electricity market: A Texas case study

The development of renewable energy in markets with competition at wholesale and retail levels poses challenges not present in areas served by vertically-integrated utilities. The intermittent nature of some renewable energy resources impact reliability, operations, and market prices, in turn affecting all market participants. Meeting renewable energy goals may require coordination among many market players.     

Climate change implications for wind power resources in the Northwest United States

Using statistically downscaled output from four general circulation models (GCMs), we have investigated scenarios of climate change impacts on wind power generation potential in a five-state region within the Northwest United States (Idaho, Montana, Oregon, Washington, and Wyoming). All GCM simulations were extracted from the standardized set of runs created for the Intergovernmental Panel on Climate Change (IPCC). Analysis of model runs for the 20th century (20c3m) simulations revealed that the direct output of wind statistics from these models is of relatively poor quality compared with observations at airport weather stations within each state. When the GCM output was statistically downscaled, the resulting estimates of current climate wind statistics are substantially better. Furthermore, in looking at the GCM wind statistics for two IPCC future climate scenarios from the Special Report on Emissions Scenarios (SRES A1B and A2), there was significant disagreement in the direct model output from the four GCMs. When statistical downscaling was applied to the future climate simulations, a more coherent story unfolded related to the likely impact of climate change on the region's wind power resource. Specifically, the results suggest that summertime wind speeds in the Northwest may decrease by 5–10%, while wintertime wind speeds may decrease by relatively little, or possibly increase slightly. When these wind statistics are projected to typical turbine hub heights and nominal wind turbine power curves are applied, the impact of the climate change scenarios on wind power may be as high as a 40% reduction in summertime generation potential.     

A retrospective analysis of benefits and impacts of U.S. renewable portfolio standards

As states consider revising or developing renewable portfolio standards (RPS), they are evaluating policy costs, benefits, and other impacts. We present the first U. S. national-level assessment of state RPS program benefits and impacts, focusing on new renewable electricity resources used to meet RPS compliance obligations in 2013. In our central-case scenario, reductions in life-cycle greenhouse gas emissions from displaced fossil fuel-generated electricity resulted in $2.2 billion of global benefits. Health and environmental benefits from reductions in criteria air pollutants (sulfur dioxide, nitrogen oxides, and particulate matter 2.5) were even greater, estimated at $5.2 billion in the central case. Further benefits accrued in the form of reductions in water withdrawals and consumption for power generation. Finally, although best considered resource transfers rather than net societal benefits, new renewable electricity generation used for RPS compliance in 2013 also supported nearly 200,000 U. S.-based gross jobs and reduced wholesale electricity prices and natural gas prices, saving consumers a combined $1.3–$4.9 billion. In total, the estimated benefits and impacts well-exceed previous estimates of RPS compliance costs.     

Large scale wind power integration in China: Analysis from a policy perspective

Between 2006 and 2010 the installed capacity of wind power in China has doubled and by 2010 China's cumulative installed capacity of wind power ranked the first in the world, surpassing the United States. However, the rapid expansion of installed capacity has not been matched by grid connection, and this deficiency has aroused the concern of both policy makers and scholars. Unlike most of the current studies which focus on technical strategies in China's wind power industry, this paper analyzes the problem from a policy perspective. The paper analyzes the four challenges that large scale wind power integration in China faces: the uncoordinated development between wind power capacity and power grids; the lack of suitable technical codes for wind power integration; the unclear nature of the grid companies’ responsibility for grid connection; and the inadequate economic incentives for grid enterprises. To address these problems, the paper recommends that the government: formulates policies to better coordinate the development of wind power and the planning and construction of power grids; establishes grid codes that reflect in particular the requirements to be met by users of power transmission and distribution networks; and integrates administrative intervention and economic incentive policies to stimulate the grid enterprises’ enthusiasm to absorb wind power generation.     

Review on wind power development and relevant policies in China during the 11th Five-Year-Plan period

Since 2005, there has been dramatic progress in China's wind power industry. The annual growth rate of newly constructed capacity reached a miracle of 105% and the total installed capacity has increased from 1.27 GW in 2005 to 44.73 GW in 2010, which has exceeded the target of China's energy long-term planning for 2020. During the 11th Five-Year-Plan (FYP), the Chinese government has issued a series of polices to promote and regulate the development of wind power industry, which is the underlying force driving its rapid development. This paper is a systematical review on the current status and policies of wind power industry in China. Firstly the current status including achievements and shortcomings is presented, and then the relevant polices and regulations released during the period of 11th FYP are reviewed. Meanwhile, the main approaches of the policies and regulations in promoting the development of wind power industry are discussed and the issues of the current policies are analyzed. Finally, the paper concludes on the perspectives of wind power policies in China.     

Exploitation and utilization of the wind power and its perspective in China

Wind energy, as a reliable, natural and renewable electrical power supply, produces no emissions and so it is an excellent alternative to conventional, more heavily polluting fuels in the long term based on the worldwide concern about the environment and energy supply. Wind energy resources in China are affluent, but its distribution are uneven, centralized, and far from both the utility and the high electricity demand markets. This made China's onshore wind power development have such characteristics as large scale, high centralization and far transmission, which is different with that in Europe, where the characteristics are even distribution, decentralized. In past two decades, considering the economic, technical and environmental benefits of wind power, China has given priority to its development. Besides the dramatic growth of large scale grid-connected wind power, household-scale wind power has been used most successfully in remote rural regions in China. Therefore, the development of wind power will be of great importance to alleviate the energy crisis and environmental pollution resulting from the rapid economic growth of China in the future. In this paper, the current development of wind energy utilization in China is investigated, and some critical barriers are discussed. Finally, the perspective of wind energy utilization is presented, where focuses are placed on seven wind power bases.     

Green energy market development in Germany: effective public policy and emerging customer demand

This paper reviews the development of renewable energy in Germany from 1973 to 2003. It investigates the relative importance of energy policy and green power marketing in shaping the renewable energy market. More than a decade of consistent policy support for renewables under the feed-in law (StrEG) and its successor (EEG) has been an important driver for increasing renewable electricity generation to date, putting the country in a better position than most of its peers when it comes to achieving European Union targets for renewable energy. Green power marketing driven by customer demand, on the other hand, is growing, but has had limited measurable impact so far. We discuss potential intangible benefits of green power marketing and scenarios for future market development. The paper concludes with lessons that can be learned from the German case for policy design and market development in other countries.