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Impact of Stochastic Renewable Energy Generation on Market Quantities

  • Juan M. MoralesEmail author
  • Antonio J. Conejo
  • Henrik Madsen
  • Pierre Pinson
  • Marco Zugno
Chapter
Part of the International Series in Operations Research & Management Science book series (ISOR, volume 205)

Abstract

Electricity generation from stochastic renewable energy sources, such as wind and solar power, has a non-negligible impact on electricity markets. The origins of that impact relate to the economical aspects of stochastic renewable energy in electricity markets (the socalled merit-order effect), the variability and predictability of their power output, as well as the nonlinear and bounded nature of the electric power generation process itself. The way this impact materializes for the case of different market quantities (e.g., dayahead prices, system imbalance magnitude and direction, etc.) is further analyzed, while the underlying mechanisms are presented. Methodologies for the empirical analysis of that impact are finally described and applied to the case of the Nord Pool market in Scandinavia.

Keywords

Wind Power Electricity Market Wind Power Generation Local Polynomial Regression Renewable Energy Generation 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer Science+Business Media New York 2014

Authors and Affiliations

  • Juan M. Morales
    • 1
    Email author
  • Antonio J. Conejo
    • 2
  • Henrik Madsen
    • 1
  • Pierre Pinson
    • 3
  • Marco Zugno
    • 1
  1. 1.DTU ComputeTechnical University of DenmarkLyngbyDenmark
  2. 2.University of Castilla – La ManchaCiudad RealSpain
  3. 3.DTU ElektroTechnical University of DenmarkLyngbyDenmark

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